Mixed market sentiment after election results

Tuesday, May 27, 2014

Asian equity markets finished fairly mixed, while volumes remained thin. The Nikkei Index edged higher by 0.23%, while the Hang Seng index posted fresh losses after retreating by 0.17%. The JPY slid lower against the US dollar, trading around 101.8.

Nikkei Index over 2 years

NKY Index (Nikkei 225)  Daily 27 2014-05-27 08-49-47

As US and UK markets were closed on Monday due to Memorial Day and May Bank holiday, respectively, trading volumes were fairly light yesterday. This morning, European equity markets have been trading sideways within the range ahead of the key US economic releases, while investors remain cautious after the European elections results.

ECB President Mario Draghi said yesterday the ECB must be “particularly watchful” for any negative price spiral across the Eurozone. He added that the European Central Bank is currently watching deflation risks and is ready to act soon, if needed. The euro rebounded from a three month low against the USD and edged higher in early trade this morning, currently trading at 1.365 against the US dollar.

EURUSD 

EURUSD Curncy (EUR-USD X-RATE)  2014-05-27 08-48-02

 

Oil: Brent front month futures climbed higher towards $111 per barrel amid oil supply disruption concerns as Ukraine launched air strikes to put down a separatist revolt, while ongoing tensions in Libya continue to dominate the oil market.

Brent Front Month 

CON4 Comdty (BRENT CRUDE FUTR  J 2014-05-27 08-46-44

Coffee: Brazil could release some of its public coffee stocks later in 2014, if needed, in order to cool a spike in coffee prices, but it will not make any move now that farmers are in the process of harvesting, according to Brazil’s Farm Minister.

NY Coffee over 2 years 

KCN4 Comdty (COFFEE 'C' FUTURE J 2014-05-27 08-45-55 

 

Events for today:

 

1330

US

Apr

Durable Goods & New Orders

1500

US

May

Richmond Fed

1500

US

May

Consumer Confidence

1530

US

May

Midwest Manufacturing

 

All times UK Local Time

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