The euro hit a 9-month low

Wednesday, August 13, 2014

Japan’s GDP shrank by 6.8% y/y in Q2 2014, contracting the most in three years since the record earthquake and raising concerns about a slowdown in consumption and investments. China’s retail sales jumped by 12.2% y/y, slightly below expectations of a 12.5% rise. Industrial production rose by 8.8% in July in line with analysts’ estimates. Asian equity markets edged higher and posted modest gains following the tepid economic indicators. The Nikkei gained more than 0.3% breaking above 15,200, while the Hang Seng index edged higher by 0.10% trading around 24,700.

Japan's GDP shrank by 6.8% y/y

JGDPAGDP Index (Japan Real GDP A 2014-08-13 09-08-33

Germany’s CPI inflation increased to 0.3% m/m in July, in line with expectations, while the y/y figure was fairly unchanged at 0.8%. European equity markets rebounded and posted fresh gains this morning, showing signs of correction higher. 

The euro remains under heavy pressure trading around 1.33 against the USD, showing sharp downside momentum following the recent downtrend which started on 1st July when the European currency was trading around the 1.37 area. The weak euro has weighed heavily on market sentiment; bring further declines across the European equity markets in the last few trading sessions.  

The Euro under heavy pressure

EURUSD Curncy (EUR-USD X-RATE)  2014-08-13 09-07-49 

Energy: Brent front month futures plunged yesterday and tested a low at $102.65 per barrel to finish the session at $103 per barrel. This morning, Brent futures extended sharp losses trading below $103, showing potential for further declines in the market. Brent futures have declined more than $10 in the last 6 weeks, while the key area of $100 is likely to provide key support for the market.

Brent Futures breached below $103 per barrel 

CO1 Comdty (Generic 1st 'CO' Fut 2014-08-13 08-37-31

  

Events for today:

 

0630

CN

Jul

Retail Sales

0630

CN

Jul

Industrial Production

0700

DE

Jul

CPI & HICP

0930

UK

Jul

Claimant Count

0930

UK

Jun

ILO Unemployment

1000

EZ

Jun

Industrial Production

1330

US

Jul

Retail Sales

1500

US

Jun

Business Inventories

1530

US

w/e

EIA Energy Stocks

 

All times UK Local Time

 

More from: Myrto Sokou