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The euro declined as the European Central Bank (ECB) refrained from commenting on the future of the Quantitative Easing (QE) programme, due to end on March 2017, leading investors to think that the bank will not end its asset purchases in an abrupt way.
ECB President Mario Draghi said the Committee had not discussed regarding the end of the QE, at his press conference post the ECB meeting, triggering discussions on potential ‘QE engineering’ to allow the viability of the programme and to maintain the monetary conditions loose in the Eurozone.
The EURUSD declined below the 1.0900 handle. The third weekly loss in the EURUSD, hints at stronger downside potential for a mid-term decline towards the 1.0850/1.0800 area. The rising selling pressure in the euro should strengthen short-term offers at 0.9000 in the euro-pound.
The DAX is heading towards the 10800 resistance on the back of dovish ECB expectations, with a possible exhaustion of the short-term gains at this level, before a renewed attempt towards the 11000 level.
The yen and the pound kept quiet, and traded in a tight range close to their respective 50, 100 and 200-hour moving averages.
The FTSE 100 opened mixed and is hesitating at the 7000p level. News that British American Tobacco (+3.50%) offered to buy Reynolds American, aiming leadership in the US market adding Newport, Kent and Pall Mall to its product portfolio, triggered a rally in the sector, also sending Imperial Brands 2.37% higher in London. Together, BAT and IMB added 260 points to the FTSE 100.
Energy stocks (-0.35%) declined as WTI failed to clear offers at $52 for the second time in a week, suggesting a minor correction to $50/$49 zone.
The US dollar remained well bid against all of its G10 counterparts in Asia, except the Aussie. The AUDUSD gained 0.25%, suggesting a will for recovery to 0.7680/0.7730 after having bumped into a decent profit taking at Thursday’s session.
Canada has a crowded economic calendar for the day. The retail sales and inflation data should determine whether or not the USDCAD could stretch up to 1.3300 before the weekly closing bell.
European markets look set to turn lower at the start of trading on Monday. The new US and Chinese tariffs take effect today so traders in Asia and Europe look cautious. Both continents are more exposed to global trade than the US. For markets, the new tariffs …Read more
Whilst risk sentiment has been healthy across the week, this swelling optimism boosted US stock markets to an all-time high overnight. A rally in tech stocks, which have done a lot of lifting for the indices over the year, in addition to fading concerns over U…Read more
Despite a shaky end to trading on Wall Street overnight, which saw the Dow gain 0.6%, the S&P just 0.1% and the Nasdaq slip by the same, Asian markets moved broadly higher on improved sentiment. European bourses are taking the lead from the US over Asia, w…Read more
Asian markets took the lead from Wall Street overnight, rallying as the latest tit for tat measures in the escalating trade spat have not been quite as severe as the markets had been expecting. Tech stocks were also heavily in demand, bouncing back after steep…Read more
Traders are faced with a sea of red in risk-off trading as markets are set to open on Tuesday. Despite the fact the market has been expecting an escalation in trade tensions between the world’s two largest economies with further tariffs from Trump; the reality…Read more
Escalating trade tensions will once again be a central theme to driving sentiment and trading this week, with President Trump widely expected to levy tariffs on a further $200 billion worth of Chinese imports, potentially as soon as today. The elevated trade c…Read more
European bourses are set to take the lead from a positive session on Wall Street and Asia overnight. A drive higher from tech stocks on Wall Street helped lift Asian equities after their recent battering, pulling them off 2-year lows.
Asian markets were endin…Read more
Today will be a busy day for traders with 2 central bank rate decisions and US inflation data all due for release within a few hours of each other. The BoE monetary policy announcement will kick things off, followed shortly after by the ECB rate announcement a…Read more