Markets consolidate ahead of key US economic data

Friday, September 12, 2014

In Asia, Japan’s industrial production rose by 0.4% in July compared to 0.2% in June. The Nikkei index continued its strong uptrend adding almost 40 points (+0.25%), while the Hang Seng index retreated for a sixth consecutive session overnight. 

The US equity markets were fairly mixed yesterday. The Dow Jones slid lower by 0.12% to finish the session just below the 17,050 points, while the S&P 500 and Nasdaq indices edged higher. This afternoon, the release of the University of Michigan/ Thomson Reuters survey regarding current market conditions and expectations will draw further market attention. In addition, investors will be keeping an eye on the US retail sales and import/export prices data.

Dow Jones Index

INDU Index (Dow Jones Industrial 2014-09-12 09-33-07

In the UK, a new YouGov poll showed this morning that supporters of keeping Scotland in the UK have managed a 4% point lead over separatists, ahead of next week’s referendum. The London benchmark index posted fresh gains in early trading this morning, while sterling fluctuated around 1.625. European equity markets opened the session higher this morning ahead of the releases of Eurozone’s industrial production data for July and employment figures for Q2 2014.  

GBPUSD Spot

GBPUSD Curncy (GBP-USD X-RATE)   2014-09-12 09-32-17

European Union governments agreed yesterday to begin a new series of sanctions against Russia on Friday but they reported that sanctions could be lifted next month if Moscow accepts ceasefire. In addition, the US prepared its own fresh sanctions against Russia.

Energy: Brent front month futures rebounded from a 2-year low on Friday and breached above $98 per barrel, as the oil market has overeacted in the last few trading session posting heavy losses. The WTI front month contract has also climbed higher trading above $93 per barrel ahead of key US economic data, including retail sales, import/export prices and business inventories. Furthermore, Saudi Aramco and joint venture partner Sinopec reported that they have just started test runs at their 400,000 bpd Yanbu refinery, in Saudi Arabia.

Brent Front Month Futures rebound

CO1 Comdty (Generic 1st 'CO' Fut 2014-09-12 09-32-36

WTI Front Month Contract

CL1 Comdty (Generic 1st 'CL' Fut 2014-09-12 09-32-47

 

Events for today:

 

0530

JP

Jul

Industrial Output

0630

CN

Aug

Retail Sales (13/9/14)

0630

CN

Aug

Industrial Production (13/9/14)

1000

EZ

Q2

Employment

1000

EZ

Jul

Industrial Production

1330

US

Aug

Import/Export Prices

1330

US

Aug

Retail Sales

1455

US

Sep

University of Michigan Survey

1500

US

Jul

Business Inventories

 

All times UK Local Time

 

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