Equities trade significantly lower and crude oil remains near 5-year low

Tuesday, December 09, 2014

UK BRC retail sales rose 0.9% in November beating analysts’ expectations of a 0.6% rise. According to new data from the British Retail Consortium, families are now purchasing 30% of their household appliances, clothes and furniture online. The report showed that, for the first time, families are using the internet for nearly a third of their main shopping, excluding groceries.

German imports fell 3.1% m/m in October

GRBTIMMM Index (Bundesbank Germa 2014-12-09 08-58-55

On the other hand, German economic data continue to weigh heavily on market sentiment as imports declined sharply 3.1% m/m in October against a rise of 5.4% in September, missing analysts’ expectations while exports also fell by 0.5% m/m in October. Consequently, European equity markets remained under pressure extending losses in early trade this morning. The CAC, DAX, IBEX and London equity benchmark retreated between 1.0% and 1.6% in early trade. The euro rallied against the USD hovering around 1.235.

EURUSD

EURUSD Curncy (EUR-USD X-RATE)   2014-12-09 08-59-24

In Greece, political uncertainty continues to dominate the markets. Greek Prime Minister Antonis Samaras risks snap Greek elections with an early Presidential vote on 17th December. This move could trigger parliamentary elections in Greece as early as January.

Asian equity markets plunged overnight with the Hang Seng index retreating sharply over 560 points (-2.3%) to finish the trading session at 23,485.83. The Nikkei index tracked the downtrend and posted fresh losses (-0.68%) towards 17,800. Chinese imports declined surprisingly by 6.7% y/y in November against analysts’ estimates of a 3.8% rise. Chinese exports rose 4.7% y/y in November but missed analysts’ expectations of a solid 8.0% rise.

Hang Seng index

HSI Index (Hong Kong Hang Seng I 2014-12-09 09-01-35  

Following the recent disappointing Chinese and German imports/exports data, crude oil prices remained under pressure and extended losses in early trade this morning. WTI front month futures plunged below $63 per barrel and Brent front month futures slid towards $65 per barrel. Brent futures have retreated more than $7 since the beginning of December, extending sharp declines for sixth consecutive trading session.

Gold edged higher and broke the $1200/ounce key level as risk appetite across equity and commodity markets remains limited. Silver climbed higher this morning heading towards $17.00/oz while platinum and palladium extended gains within the recent range.   

XAU Spot- Gold

XAU Curncy (Gold Spot   $_Oz )  2014-12-09 09-02-25

 

Events for today:

 

0001

UK

Nov

BRC Retail Sales

0700

DE

Oct

Trade Balance

0900

UK

Oct

Industrial Production

1500

US

Dec

IBD Sentiment

1500

UK

Nov

NIESR GDP Estimate

 

All times UK Local Time

 

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