A busy day for equity and commodity markets

Thursday, January 23, 2014

China’s HSBC Manufacturing PMI flash declined to 49.6 in January, compared to 50.5 in December, missing analysts’ estimates. The Chinese PMI data weighed on market sentiment and added pressure to the Asian equity markets. The Nikkei retreated sharply by 125.07 points (-0.8%), while Hang Seng plunged by 330.10 points (-1.51%). It should be noted that China’s manufacturing sector contracted in January for the first time in six months. (Contraction happens when the figure is below 50.0 level).   

European equity markets have been trading sideways in early trading this morning as investors’ attention has switched to the releases of major macroeconomic indicators later today. The main focus will turn to the Markit Flash Manufacturing and Services PMI data from Eurozone, Germany and the US.

In the afternoon, the releases of the US housing data including monthly home prices and existing home sales will draw market’s attention as well as the weekly jobless claims figures and the KC Fed composite index.

Currencies: The US dollar came under pressure this morning with the USD index falling below 81.0 area, in a correction lower, ahead of the releases of major macroeconomic data. Furthermore, the euro has rebounded strongly, trading at 1.36 against the US dollar. Furthermore, the Canadian dollar slid to reach a 4 1/2-year low after the Bank of Canada reported the currency's depreciation should help exports.

Commodities: Brent slipped towards $108 per barrel as weak Chinese economic data weighed on market sentiment and raised renewed concerns about a slowdown in the oil demand from China.

Gold retreated to its lowest level in nearly two weeks, while platinum eased from a 2-1/2 month high ahead of planned strikes at South African mines.

XAU- Gold Daily Chart over 2 years

XAU Gold 2301

 

XPT- Platinum Daily Chart

Platinum

Events for today

0828

DE

Jan

Markit Flash Mfg & Services

0858

EZ

Jan

Markit Flash Mfg & Services

1330

US

w/e

Jobless Claims

1400

US

Nov

Monthly Home Prices

1400

US

Jan

Markit Mfg PMI

1500

US

Dec

Existing Homes Sales

1500

US

Dec

Lead Indicators

1600

US

Jan

KC Fed

1600

US

w/e

EIA Energy Stocks

 

All times UK Local Time

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