DAX sheds over 1000 points in three weeks

Monday, October 13, 2014

European equity markets extended heavy losses in early trade this morning, tracking the sharp downside momentum in European economies after the recent disappointing industrial and manufacturing data from Germany and France. The DAX and CAC indices retreated more than 0.7% in early trade, suggesting the potential for further declines amid renewed concerns about economic stability in major European economies.

DAX Index has lost more than 1000 points in three weeks  

DAX Index (Deutsche Boerse AG Ge 2014-10-13 08-43-31

The euro held around 1.265 against the US dollar this morning, while support holds near recent low at 1.250. The yen climbed to one-month high against the US dollar, as increasing concerns about the health of the global economy continued to weigh on market sentiment, supporting the safe-haven Japanese currency.

EURUSD Spot

EURUSD Curncy (EUR-USD X-RATE)   2014-10-13 08-42-16

The US markets are closed today for Columbus Day, so trading volumes could remain fairly thin.  

China’s exports surged 15.3% y/y in September, beating expectations of 12%, while imports climbed higher 7% against Bloomberg’s estimates of a 2% decline. However, the Hang Seng index posted limited losses on Monday after falling 80 points (-0.35%), tracking sharp declines across the global equity markets. The Nikkei index retreated more than 170 points (-1.15%) to retest 15,300, falling for a fourth consecutive trading session.   

Crude oil prices remained under pressure with the WTI front month futures trading around $84 per barrel while Brent front month futures holding around $88 per barrel. Kuwait said OPEC is unlikely to cut crude oil production in order to support oil prices and Saudi Arabia privately told oil markets that it is ready to accept oil prices perhaps down to $80 a barrel, according to Thomson Reuters.

WTI front month futures

CL1 Comdty (Generic 1st 'CL' Fut 2014-10-13 08-42-57

Gold prices surged in Asia as a gloomy macroeconomic outlook and ongoing concerns about the global equity markets sent investors seeking safe-haven bullion. Gold spot climbed higher this morning towards $1240/per ounce.

XAU- Gold spot

XAU Curncy (Gold Spot   $_Oz )  2014-10-13 08-42-45

NY cocoa futures climbed more than 3%, showing their largest daily gain in nearly nine months on Friday as investors remained cautious about the potential impact of Ebola on cocoa supplies from West Africa. According to Thomson Reuters, Mexico is optimistic it can resolve a dispute with the US over sugar exports before an impending deadline later this month, Mexico's Economy Minister Ildefonso Guajardo reported on Friday.

 

Events for today:

 

13

 

 

US, JP Markets Holiday

CN

Sep

Imports, Exports Trade Balance

 

All times UK Local Time

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