Markets await crucial meeting between Tsipras-Merkel in Berlin

Monday, March 23, 2015

European equity markets remained under pressure in early trade this morning as the CAC, DAX, IBEX and London equity benchmark index opened in negative territory, amid renewed concerns regarding Greece’s economic stability and prospects. Greece faces a decisive week as its Prime Minister Alexis Tsipras is set to meet German Chancellor Angela Merkel in Berlin today. According to the Financial Times, Tsipras wrote to Merkel on 15th March 2015, warning her that it will be “impossible” for Greece to serve debt obligations which are due in the coming weeks if the EU does not provide short-term financial aid to the country.  Thus, the current conditions remain highly tentative and today’s meeting looks fairly crucial for the country’s economic future.

EURUSD declines below 1.08

EURUSD Curncy (EUR-USD X-RATE)   2015-03-23 09-09-15

Asian equity markets posted renewed gains overnight as the Nikkei index climbed almost 200 points (+0.99%) towards 19,760 and the Hang Seng index gained 0.49% above 24,490. Following the general optimistic tone across global equity markets on Friday, Asian equities followed the uptrend while the softer US dollar provided further support.

Gold consolidated within the recent range in early trade this morning and hovered around $1180/ounce. On the other hand, silver reversed last week’s gains and slid lower towards $16.50, while platinum and palladium extended gains and climbed higher. The release of the US Chicago Fed business index and existing home sales data in February could provide some direction to global markets in today’s trading session.

XAU- Gold consolidates around $1180/ounce

XAU Curncy (Gold Spot   $_Oz )  D 2015-03-23 09-10-31

Crude oil prices continue their sharp downside momentum as WTI front month futures retreated sharply over 2% towards $45 per barrel this morning, while Brent front month futures fell over 1.5% towards $54 per barrel. Crude oil inventories continue to increase sharply in the US having hit record high levels amid a slowdown in US oil demand. Furthermore, the recent US dollar strength weighs on market sentiment.   

WTI front month futures decline sharply towards $45/barrel

CLK5 Comdty (WTI CRUDE FUTURE  M 2015-03-23 09-11-35

 

Events for today:

 

1230

US

Feb

Chicago Fed

1400

US

Feb

Existing Homes Sales

1500

EZ

Mar

Consumer Confidence

 

All times UK Local Time

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