Weak Chinese GDP data weighs on market sentiment

Wednesday, April 15, 2015

China’s economic growth slowed to 7% during the first quarter of 2015, hitting its slowest pace since 2009. The release of China’s GDP figure was in-line with analysts’ expectations. Industrial production increased by 5.6% y/y in March, missing estimates of a 7.0% rise, while retail sales surged 10.2% in March versus analysts’ estimates of a 10.9% rise. The Hang Seng index dropped slightly by 0.15% towards 27,500 following the disappointing Chinese GDP data.

China's GDP data

CNGDPYOY Index (China GDP Consta 2015-04-15 08-42-49

European equity markets edged higher in early trade this morning, with the DAX, CAC, IBEX and London equity benchmark index adding between 0.15% and 0.45%. The euro has slightly rebounded above 1.06 against the USD, showing signs of upside correction higher. Germany’s CPI was reported at 0.5% m/m in March in-line with analysts’ expectations. The release of ECB rate and trade balance data could provide further signs regarding the European economic conditions and prospects.

Gold slid lower and breached the key level of $1,200/ounce heading towards $1,190 in early trade this morning. Silver tracked the downtrend in precious metals and extended losses towards $16.   

XAU- Gold spot

XAU Curncy (Gold Spot   $_Oz )  D 2015-04-15 08-44-05  

Crude oil prices continue their strong uptrend, extending gains in early trade this morning. WTI front month futures rose to retest $54 per barrel and Brent front month futures climbed higher towards $60 per barrel. The release of the weekly EIA oil inventories report could provide an insight regarding the current levels of crude oil stocks.

Brent front month futures 

COK5 Comdty (BRENT CRUDE FUTR  M 2015-04-15 08-44-54

  

Events for today:

 

0300

CN

Mar

Retail Sales & Ind. Production

0300

CN

Q1

GDP

0700

DE

Mar

CPI

1000

EZ

Feb

Trade Balance

1245

EZ

Apr

ECB Rate

1330

US

Apr

NY Fed Manufacturing

1415

US

Mar

Industrial Production

1500

US

Mar

NAHB Housing Market Index

1530

US

w/e

EIA Energy Stocks

1900

US

w/e

Fed Beige Book

 

All times UK Local Time

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