Global equity markets remain under heavy pressure

Wednesday, September 24, 2014

Asian equity markets were fairly mixed overnight. The Nikkei index retreated by 0.25% towards 16,160, while the Hang Seng index climbed higher adding near 100 points (+0.4%) towards 23,950. US equities remained under further pressure yesterday with the Dow Jones, Nasdaq and S&P 500 extending losses following the bearish US economic indicators.

The Nikkei Index

NKY Index (Nikkei 225)  2014-09-24 08-42-20

European equity markets extended losses this morning, remaining under pressure. The release of the German Ifo Business Climate and Current Assessment Index could provide further signs about the current German conditions and expectations, setting the tone for today’s trading session.

The USD index reversed from recent gains and slid lower, trading around 84.6 against a basket of currencies. The euro climbed higher yesterday to retest the 1.29 level, but gains were short-lived as disappointing European economic data weighed on market sentiment and added renewed pressure to the European currency. This morning, the euro has been trading around 1.285.  

EURUSD Spot

EURUSD Curncy (EUR-USD X-RATE)   2014-09-24 08-41-03

USD Index

DXY Curncy (DOLLAR INDEX SPOT)   2014-09-24 08-41-31

Energy: Brent front month futures gave back earlier gains and slid lower yesterday to finish the day below $97 per barrel. This morning, prices edged slightly higher to retest $97, struggling for signs of direction ahead of the weekly US EIA oil inventories report. The WTI front month contract has also rebounded towards $92 per barrel, supported by a softer USD. The release of the US New Homes Sales could provide further signs about the country’s economic prospects.   

 

Events for today:

 

0900

DE

Sep

Ifo Business Climate Survey

1500

US

Aug

New Homes

1530

US

w/e

EIA Energy Stocks

 

All times UK Local Time

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