Key economic data will dominate market sentiment

Thursday, February 06, 2014

UK Halifax house prices jumped by 1.1% in January, beating analysts’ expectations. Following the optimistic data the UK benchmark index posted fresh gains toward 6,500 points, up 0.25%). The release of the interest rate decision from the Bank of England is expected later today, but we do not expect any big surprises regarding the monetary policy.

European equity markets have also rebounded this morning, while the euro has been trading sideways around the 1.35 area against the USD. European Central Bank policymakers might face a dilemma in today’s meeting following a surprise fall in inflation, which brought the Eurozone closer to slipping into deflation. However, please note that the recent GDP data across the Eurozone remains fairly optimistic.

ICE Arabica coffee futures climbed to retest a 9-month high on Wednesday, showing its steepest 7-day rally since July 2000 following concerns that a dry spell in Brazil would cut output in the world's top producer.

Brent crude held steady above $106 per barrel as concerns about global economic growth hit the demand outlook, while its premium to US crude continued to narrow as more freezing weather conditions continue to hit the United States.

ICE Arabica Coffee

ICE Arabica

 

Events for today:

 Chinese Market Holiday

 

1100

DE

Dec

Industrial Orders

1200

UK

Feb

BoE Rate

1230

US

Jan

Layoffs

1245

EZ

Feb

ECB Rate

1330

US

Dec

Trade Balance

1330

US

Q4

NF Prod. & Labour Costs

1330

US

w/e

Jobless Claims

1530

US

w/e

EIA Nat Gas

 

All times UK Local Time

Click here to view the latest Sucden Financial monthly calendar

 

More from: Myrto Sokou