Disappointing European GDP releases weigh on market sentiment

Thursday, August 14, 2014

Eurozone’s macroeconomic outlook remains fairly gloomy following disappointing GDP releases from key European economies. Germany’s GDP shrank by -0.2% in Q2 2014, missing analysts’ estimates of a 0.1% fall, while stagnation in France prompted the French government to scrap its deficit target for 2014. European equity markets opened the session sharply lower following the disappointing GDP releases and the euro extended losses against the USD trading around 1.33.

Germany's GDP shrank 0.2% in Q2 2014

GRGDPPGQ Index (Germany GDP Chai 2014-08-14 08-45-53

France's GDP was unchanged at 0.0% missing expectations of a 0.1% rise

FRGEGDPQ Index (France GDP Chain 2014-08-14 08-46-16

EURUSD Spot

EURUSD Curncy (EUR-USD X-RATE)  2014-08-14 08-45-29

 

UK RICS house prices balance was reported at 49% in July compared to 53% in June, missing analysts’ expectations. Sterling remained under pressure after falling for a second consecutive session against the USD, trading around 1.665.   

Energy: Brent front month futures rebounded strongly in yesterday’s session to finish the day at $104.28, supported by large declines in distillate and gasoline inventories. The weekly DOE oil inventories report showed gasoline stocks fell by 1.160 mln barrels, in line with expectations, while distillate stocks which include heating oil declined largely by 2.42 million barrels. However, crude stocks continued to build up, rising further by 1.4 mln barrels as crude stocks in Cushing, Oklahoma, increased by 418,000 barrels. This morning, Brent futures gave back of yesterday’s gains and slid lower within the recent range in early trading.

Brent Front Month Futures

CO1 Comdty (Generic 1st 'CO' Fut 2014-08-14 08-45-03   

 

 

Events for today:

 

0001

UK

Jul

RICS House Prices

0700

DE

Q2

GDP

1000

EZ

Jul

Inflation

1330

US

Jul

Import- Export Prices

1330

US

w/e

Jobless Claims

1530

US

w/e

EIA Nat Gas

 

All times UK Local Time

Topics: GDP, Europe, Energy, Brent, EUR, GBP, UK, Germany
More from: Myrto Sokou