A strong rebound for global equity markets

Wednesday, March 11, 2015

Following yesterday’s sharp sell-off across global equity and commodity markets, there was a more optimistic tone in today’s trading session. European equity markets rebounded strongly and climbed higher in correction with the DAX, CAC, IBEX and London equity benchmark indices gaining between 0.2% and 2.5%. The Dow Jones index also posted fresh gains and rose towards 17,750 while the S&P 500 and NASDAQ also edged higher.

DAX index rebounds above 11,800

DAX Index (Deutsche Boerse AG Ge 2015-03-11 16-30-24

However, the US dollar continues its strong upside momentum as the USD index rallied above 99.50 today adding some pressure to crude oil and base metal prices. Copper extended declines towards $5740 while nickel, lead, tin and zinc remained in negative territory. Aluminium bucked the downtrend and edged higher towards $1770.

USD index rallies above 99.50

DXY Curncy (DOLLAR INDEX SPOT)   2015-03-11 16-32-12

The DOE crude oil inventories report was fairly bearish today after showing a large build of 4.5 million barrels in crude oil stocks, a rise of 2.5 million barrels in distillate stocks and a small drop of 187,000 barrels in gasoline inventories. Thus, crude stocks continue to build up for a ninth consecutive week adding pressure to WTI front month futures which slid lower towards $47/barrel.   

WTI front month futures retreat towards $47.50/barrel

CLJ5 Comdty (WTI CRUDE FUTURE  A 2015-03-11 16-33-42

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