A strong rebound in equity markets

Monday, August 11, 2014

Asian equity markets rebounded strongly and opened the week on the positive side. Japan’s consumer confidence index was reported at 41.5 in July compared to 41.1 in June, but missed analysts’ expectations of 42.0. The Nikkei surged more than 350 points (+2.38%), breaching above the 15,100 points area. The Hang Seng Index rallied 300 points (+1.25%) towards 24,650.   

Hang Seng Index

HSI Index (Hong Kong Hang Seng I 2014-08-11 09-01-07

This morning, European equity markets opened the week higher showing strong gains in early trading despite the lack of major macroeconomic releases. However, the euro continues to remain under pressure trading around 1.335 against the US dollar following the recent tepid European economic data.


EURUSD Curncy (EUR-USD X-RATE)  2014-08-11 08-59-52 

News that Italy is back to recession following the country’s GDP reading weighed on market sentiment and prompted a selloff of the European currency. Italy’s Prime Minister, Matteo Renzi, reported over the weekend that Eurozone’s third largest economy is on track to hit its budget targets this year, despite the  recent GDP release for Q2 2014.     

Energy: Brent front month futures retreated toward $105 per barrel on Friday. This morning, Brent futures remained under pressure in early trading holding around $105 per barrel, while the WTI front month contract has edged slightly higher trading around $97.80-$98 per barrel.

OPEC cut its 2014 global oil demand growth forecast for a second consecutive month in August and reported that the group managed to increase output in July despite the ongoing uncertainty in Iraq and Libya, pointing to ample global supplies.

Brent Front Month - CL1

CO1 Comdty (Generic 1st 'CO' Fut 2014-08-11 09-00-30  


Events for today:





Consumer Confidence


All times UK Local Time

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