Equity markets reverse lower due to profit taking

Thursday, February 13, 2014

European equity markets reversed and slid lower due to profit taking as investors try to lock in recent gains after the recent rally across the global equity markets. CAC, DAX and the FTSE 100 Index have posted modest losses this morning, tracking losses in the US and Asian equity markets. The Dow Jones index ended lower by 0.19%, while the Nikkei and Hang Seng indices retreated sharply by 1.79% and 0.54%, respectively.   

Oil: Following the recent OPEC monthly report, global oil demand is due to increase slightly more than expected in 2014. More specifically, OPEC announced that the world’s oil demand will rise by 1.09 million barrels per day this year, up about 40,000 bpd from its previous forecast. Brent crude futures slipped towards $108 per barrel, sliding lower for the first time in three trading sessions.

Gold has been trading near a 3-month high, showing potential to break above the $1,300 level amid hopes for a QE tapering that could offset any negative impact from firmer equities.

Currencies: The euro recovered from recent losses early on Thursday, trading above the 1.36 level against the US dollar, having suffered a setback on bearish comments from a top ECB official and the recent disappointing Eurozone’s industrial production data.

EURUSD

EURUSD Curncy Ch

  

XAU- Gold Daily Chart

Gold Daily

Events for today: 

 

0001

UK

Jan

RICS House Prices

0700

DE

Jan

CPI & HICP

1330

US

w/e

Jobless Claims

1330

US

Jan

Retail Sales

1530

US

w/e

EIA Nat Gas

1500

US

Dec

Business Inventories

 

All times UK Local Time

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