Markets fluctuate ahead of US non-farm payroll

Friday, February 06, 2015

The main focus will turn to the release of the US non-farm payrolls this afternoon, which will set the tone for today’s trading session in global equity and commodity markets. At the moment, the USD dollar index remains under pressure trading around 93.6 against a basket of currencies.

USD Index trades around 93.6

DXY Curncy (DOLLAR INDEX SPOT)   2015-02-06 08-55-10

Asian equity markets ended fairly mixed. The Nikkei index climbed higher and gained 0.82% to finish the session at 17,648.50, while the Hang Seng index remained under pressure after falling 0.35% towards 24,675. Japan’s leading index was reported at 105.2 in December compared to 103.9 in November, missing analysts’ expectations. Francois Hollande and Angela Merkel will head to Moscow today in order to push Vladimir Putin for a cease-fire in Ukraine. The French and German leaders have already met Ukrainian President Petro Poroshenko yesterday.

Germany’s industrial production increased slightly by 0.1% in December, missing analysts’ expectations of a 0.4% rise. Spain’s industrial output SA declined 0.9% y/y in December against estimates of a 0.3% rise. The European equity markets opened lower this morning, extending losses following ongoing uncertainty regarding the Greek debt issues. The CAC, DAX, IBEX and London equity benchmark retreated between 0.15% and 0.4% in early trade. The euro hovered around 1.145 against the US dollar after hitting a high yesterday at 1.1499.

EURUSD hovers around 1.145

EURUSD Curncy (EUR-USD X-RATE)   2015-02-06 08-56-32

Gold edged higher and climbed above $1260/ounce in early trade this morning acting as safe haven, while silver slid slightly lower towards $17. Platinum and palladium remained in negative territory. Crude oil prices extended gains this morning as WTI front month futures climbed over 1.8% towards $51.50 per barrel while Brent front month futures surged towards $58/per barrel.

Brent front month futures climbed towards $58/barrel in early trade this morning

COH5 Comdty (BRENT CRUDE FUTR  M 2015-02-06 08-58-09

 

Events for today:

 

0500

JP

Dec

Leading Index

0700

DE

Dec

Industrial Production

0930

UK

Dec

Trade Balance & Non EU

1330

US

Jan

NF Payrolls & Unemployment

2000

US

Dec

Consumer Credit

 

All times UK Local Time

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