A volatile week for global equities and crude oil

Friday, April 24, 2015

It has been a volatile week for global equity and commodity markets as the softer USD provided some support but fairly disappointing US economic data and ongoing concerns regarding Greece’s economic stability continue to dominate the markets, bringing high volatility and nervous trading conditions.

At the time of writing, European equity markets have edged higher with the DAX, CAC, IBEX and London equity benchmark indices gaining between 0.10% and 0.50%, while the euro has rebounded reaching a high at 1.09 today against the US dollar. The release of the German IFO Business climate index was quite optimistic after showing an increase to 108.6 in April from 107.9 in March, while the IFO German current assessment was reported at 113.9 in April compared to 112.0 in March, beating analysts’ estimates.

EUR rebounds to retest 1.09 against the USD

EURUSD Curncy (EUR-USD X-RATE)   2015-04-24 15-56-15

In the US, the Dow Jones index consolidated around 18,050 in early trade, while the S&P 500 and NASDAQ rebounded and climbed higher. The USD index has remained under pressure for third consecutive session trading around 97.0 against a basket of currencies. Durable goods orders jumped 4% in March beating analysts’ expectations of a more modest 0.6% increase.   

USD index declines below 97.0

DXY Curncy (DOLLAR INDEX SPOT)   2015-04-24 15-58-22

It has been a volatile week for the oil market, as renewed tensions in the Middle East provided some initial upside momentum to crude oil prices offsetting concerns regarding ongoing high levels of crude oil inventories. Brent front month futures extended gains and climbed above $65 per barrel while WTI front month futures missed the uptrend and remained under some pressure after sliding lower below $57 per barrel. 

WTI front month futures retreat below $57/barrel

CLM5 Comdty (WTI CRUDE FUTURE  J 2015-04-24 15-59-33

More from: Myrto Sokou