Gold remains below $1,200 and Chinese equity markets extended losses, hit by interbank rate volatility

Friday, December 20, 2013

Chinese equity markets came under pressure on Friday with Hang Seng retreating by 76.57 points (-0.33%), while the Japanese yen fell to a fresh 5-year low against the dollar, hit by interbank rate volatility. However, the Nikkei managed to close in positive territory at 15,870.42 points.  

European equity markets have been fairly mixed this morning, as the CAC index has slid lower by 0.2%, while DAX, IBEX and London have been posting gains more than 0.15%. The euro has been under pressure, trading around 1.36 against the dollar. In the meantime, the IMF has warned Portugal of possible tough years ahead. As the country plans to exit its 78bln euro bailout, a senior IMF official warned that it may take 10 years to address structural changes, according to an article in the FT.

The UK retail stocks have been under pressure recently, following fairly disappointing pre-Christmas sales. Shares in Marks and Spencer, Next, Sainsbury, Tesco and Morrison have retreated sharply in the last few trading sessions, as discounts and promotions have dominated the high street to boost consumer confidence. The recent GfK consumer confidence index was reported at -13 in December, missing analysts’ expectation.

Gold fell as much as 2% to $1,193.60, as the Fed’s decision to scale back its QE programme by $10 bln a month, starting January, weighed on market sentiment in precious metals.

It is a busy day on the data front, with the main focus switching to the releases of the GDP data in the UK and the US, as well as Eurozone’s consumer confidence figures.  

 

Gold - XAU 

Gold


Events for today: 

0001

UK

Dec

GfK Consumer Confidence

0700

DE

Nov

PPI

0930

UK

Q3

GDP Final

0930

UK

Nov

PSNCR & PSNB

1330

US

Q3

GDP  &  PCE  Final

1500

EZ

Dec

Consumer Confidence

1600

US

Dec

KC Fed

  OE:  

Dec FTSE 100 Index & Equity (LIFFE)

 

All times UK Local Time

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