A busy day for equity and commodity markets including key macroeconomic data

Wednesday, March 05, 2014

Strong economic data from China spread optimism across equity and commodity markets in early trade today. HSBC/Markit Services PMI jumped to 51.0 in February compared to 50.7 in January, showing signs of recovery in the Chinese economy. Please note that China set a 7.5 percent target for economic growth in 2014. The Nikkei index climbed higher by 1.2%, while the Hang Seng index posted limited losses after retreating by 0.34%. The Yen held steady against the US dollar, trading above the 102.3 area.

In Ukraine, political tensions have slightly eased. The Russian President Vladimir Putin said on Tuesday that he would use force in Ukraine only as a last resort. However, it seems that until there is a clear resolution to the Ukrainian political issue, we can expect further volatility and nervous trading conditions in the markets.

European equity markets are looking for key economic releases from Eurozone and the US for further direction. The main focus will turn to the Markit Services PMI data from the Eurozone, Germany and the UK as well as Eurozone’s GDP data and retail sales figures. The euro has corrected slightly lower, trading around 1.37 against the USD.

Brent crude held steady above $109 per barrel from a 2-month high in the previous session. The release of the weekly EIA oil inventories report this afternoon will give a better outlook about the levels of the US oil inventories.  

Gold was little changed, trading around $1,335 as concerns about tensions between Russia and Ukraine eased, while investors will be keeping an eye on the releases of key economic data from the US this afternoon including ADP national employment data, ISM non-manufacturing PMI and Markit Services PMI final.

Brent Daily Chart 

COJ4 Comdty (BRENT CRUDE FUTR  A 2014-03-05 08-55-00

EUR Spot - Daily Chart

EUR Curncy (Euro Spot )  2014-03-05 08-56-52

 

Hang Seng Index - Daily Chart 2 Years

HSI Index (Hong Kong Hang Seng I 2014-03-05 08-58-31


Events for today:

0200

CN

Feb

HSBC Markit Services PMI

0855

DE

Feb

Services PMI

0900

EZ

Feb

Services PMI

0930

UK

Feb

Services PMI

1000

EZ

Q4

GDP Revised

1000

EZ

Jan

Retail Sales

1500

US

Feb

ISM Non-Manufacturing

1530

US

w/e

EIA Energy Stocks

 

All times UK Local Time

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