The main focus turns to the US employment data

Thursday, April 02, 2015
European equity markets edged higher this morning, supported by the recent solid European manufacturing PMI data. The CAC, IBEX and London equity benchmark index posted modest gains this morning while the DAX index consolidated around 11,970. The release of the UK Markit/CIPS construction PMI data as well as key US employment indicators (weekly jobless claims and Challenger layoffs) could provide momentum to global equity markets in today’s session.

The euro climbed higher and surged above 1.08 against the US dollar this morning, despite the ongoing concerns regarding the Greek debt issues. Furthermore, the USD index slid lower towards 97.60 against a basket of currencies, providing some support to most commodity prices. Base metal prices climbed higher this morning and gold breached above the key level of $1,200/ounce. Silver rebounded and tested $17 while platinum and palladium were mixed.

The euro rebounds towards 1.0850

EURUSD Curncy (EUR-USD X-RATE)   2015-04-02 09-16-33

Asian equity markets rebounded and climbed higher overnight as risk appetite increased. The Nikkei index rallied over 1.4% above 19,300 and the Hang Seng index climbed higher over 200 points (+0.80%) towards 25,300.
Crude oil prices posted renewed losses in early trade this morning following a bearish weekly DOE oil inventories report which confirmed a build of 4.9 million barrels in crude oil stocks for the week ending 27th March 2015. WTI front month futures retreated towards $49 per barrel and Brent front month futures slid lower towards $56.50 per barrel. The softer USD is likely to provide some support to the oil market, limiting any possible sharp losses.

Brent front month futures remain under pressure

COK5 Comdty (BRENT CRUDE FUTR  M 2015-04-02 09-17-42

We expect possible thin trading volumes across the markets today as we are heading towards the Easter holiday in the US and Europe.

   

Events for today: 

0930

UK

Mar

Markit/CIPS Construction  PMI

1230

US

Mar

Challenger Layoffs

1330

US

Feb

Trade Balance

1330

US

w/e

Jobless Claims

1500

US

Feb

Factory Orders

1530

US

w/e

EIA Nat Gas

 

All times UK Local Time

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