A end to a volatile month with choppy trading conditions

Friday, January 31, 2014

European equity markets extended losses on Friday, following a very volatile month which showed that the recent rally in the global equity markets has started to fade. The DAX has been under pressure, following heavy losses in Asia with the Nikkei index ending at 14,914.53 points, down 0.62%. 

The main focus for today will turn to the releases of Eurozone inflation and unemployment data as well as German retail sales, which will set the tone for the day. In the US, personal consumption data, Chicago PMI and the results from the University of Michigan/ Thomson Reuters survey will also draw market’s attention. In the UK, GfK consumer confidence rose to -7 in January compared to -13 in December, beating analysts’ estimates. The London benchmark index has been consolidating  

Commodities: Crude oil prices are set for the first monthly decline in four months amid concerns over a slowdown in Chinese oil consumption following the recent disappointing Chinese economic data. However, Brent futures managed to hold around $108 per barrel in the last few trading sessions, as robust US economic figures provide support, offsetting concerns in Asia.

Currencies: The US dollar traded at a one-week high against a basket of currencies, with the USD index holding above the 81.0 level. It seems that investors were prompted into some profit taking at the euro and the yen following a fairly volatile month with choppy trading conditions amid concerns about emerging economies.

Dow Jones - 2 Years Daily Chart

INDU Index

  

UK index Daily Chart

FTSE 100 Index 3101

EURUSD - Daily Chart 1 Year

EURUSD

Events for today:

 

CN Market Holiday

1330

US

Dec

PCE & Personal Income

1330

US

Q4

Employment

1445

US

Jan

Chicago PMI

1455

US

Jan

University of Michigan survey

 

All times UK Local Time

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More from: Myrto Sokou