European equities and Gold finish the week on the positive side

Friday, June 06, 2014

European equity markets extended gains today, as risk appetite increased while robust US employment data lifted market sentiment. In Eurozone, the CAC, DAX and IBEX surged between 0.4% and 1.7%, ending the week on the positive side following an interest rate cut from the European Central Bank yesterday.

DAX Index Weekly Chart

DAX Index (Deutsche Boerse AG Ge 2014-06-06 16-42-58

On the macroeconomic front, the US non-farm payrolls data showed jobs increased by 217,000 in May, fairly in line with analysts’ expectations of 218,000, while unemployment fell to 6.3% in May against estimates of 6.4%. The USD edged higher following the optimistic data, holding above 80.4.

USD Index

DXY Curncy (DOLLAR INDEX SPOT)   2014-06-06 16-40-39

In the UK, the London benchmark index gained more than 0.6%, supported by solid gains in financial and mining stocks. Lloyds, Standard Bank, Barclays, RBS and HSBC rose between 0.55% and 1.7%, while sterling came under some pressure against the USD, trading around 1.68.

Base metal prices were fairly mixed. Copper slid lower more than 1% to retest $6700, while Nickel also plunged below $18,900 due to some profit taking. On the upside, Aluminium rose above $1,860 verifying its recent uptrend.

Gold finished the week on the positive side, consolidating around $1250 per ounce in today’s trading session. Silver also managed to hold above the key area of 19.00.

Brent front month futures traded around $109 per barrel today, but were set to post a second consecutive weekly loss amid easing tensions between Ukraine and Russia, which failed to provide further support to the market.  

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