Investors' attention turns to the Eurogroup

Monday, February 09, 2015

Germany’s exports surged 3.4% in December beating analysts’ expectations of a more modest 1% rise. German imports fell slightly by 0.8% in December compared to a 1.5% increase in November. However, this week the main focus will remain on the upcoming extraordinary meeting of the Eurogroup on Wednesday 11th February, as European leaders will be discussing a possible resolution to the Greek debt issue. European equity markets opened lower in early trade this morning, as the CAC, DAX, IBEX and London equity benchmark index posted heavy losses retreating between 0.55% and 1.4%.

EURUSD holds around 1.135

EURUSD Curncy (EUR-USD X-RATE)   2015-02-09 08-48-02

China’s exports fell 3.3% y/y in January compared to a 9.7% rise in December missing analysts’ expectations of a 5.9% rise. Chinese imports declined sharply by -19.9% in January y/y from a 2.4% drop in December versus analysts’ estimates of a 3.2% decline. The disappointing data weighed on market sentiment and added pressure to Asian equity markets. The Hang Seng index retreated sharply over 150 points (-0.64%) towards 24,520, while the Nikkei index limited gains and edged slightly higher to finish the trading session at 17,711 (+0.36%).

The Hang Seng index retreated amid poor Chinese imports/exports data

HSI Index (Hong Kong Hang Seng I 2015-02-09 08-50-33

Precious metal prices climbed higher, acting as safe haven due to the ongoing uncertainty across global equity markets. Gold climbed higher 0.6% towards $1250/ounce and silver rallied over 0.8% in early trade eyeing the $17 level. Platinum and palladium extended gains and increased over 0.5%.

WTI front month futures edged higher in early trade breaching $52 per barrel, while Brent front month futures hovered around $57.50 per barrel. Due to the absence of key macroeconomic indicators today, currency movements could offer direction to the oil market. The USD index hovered around 94.4 against a basket of currencies trading within the recent range. The euro climbed higher holding above 1.135 against the US dollar, while persistent concerns regarding the Greek debt crisis continue to weigh heavily on market sentiment.

WTI front month futures edged higher to retest $52/barrel

CLH5 Comdty (WTI CRUDE FUTURE  M 2015-02-09 08-48-24

 

Events for today:

 

CN

Dec

Trade Balance (08/02/15)

0700

DE

Dec

Trade Balance

0930

EZ

Feb

Sentix Investor Confidence

All times UK Local Time

More from: Myrto Sokou