Portugal’s central bank takes control of Banco Espirito Santo

Monday, August 04, 2014

Asian equity markets were fairly mixed overnight. The Hang Seng Index rebounded and climbed by +0.25% above 24,500. The Nikkei slid slightly lower by 0.3% breaching below 15,500. China’s non-manufacturing PMI data was reported at 54.2 in July compared to 55.0 in June, hitting a 6-month low and weighing slightly on market sentiment.

Hang Seng Index

HSI Index (Hong Kong Hang Seng I 2014-08-04 09-10-17

Portugal’s central bank took control of Banco Espirito Santo in a 4.9 billion-euro ($6.6 billion) bailout. The Bank of Portugal’s Resolution Fund will move Banco Espirito Santo’s deposit-taking operations and most of its assets to a new company, Novo Banco, which it will own outright. European equity markets rebounded this morning and corrected higher, following the recent losses in the last trading sessions. The release of Eurozone’s sentiment index as well as producer prices data for June should provide  further direction.

Energy: Brent front month futures remain under pressure trading near $105 per barrel as ongoing concerns about global oil oversupply issues still outweigh worries about violence in the Middle East and North Africa. The WTI front month contract has edged slightly higher in early trading this morning, breaching above $98 per barrel.

Brent Front Month futures

CO1 Comdty (Generic 1st 'CO' Fut 2014-08-04 09-09-20

Gold found strong support above $1,290 an ounce as weak US employment data surprised the markets on Friday and eliminated concerns that the US Federal Reserve will increase interest rates soon. In addition, weaker global equity markets prompted some safe-haven bids.

  

Events for today:

 

0200

CN

Jul

Non-Manufacturing PMI (3/8/14)

0930

EZ

Aug

Sentiment Index

0930

UK

Jul

Markit/ CIPS Construction Index

1000

EZ

Jun

Producer Prices

1445

US

Jul

ISM Manufacturing PMI

1500

US

Jun

Employment Trends

 

All times UK Local Time

 

More from: Myrto Sokou