Weak German economic data adds pressure on European equities

Friday, January 09, 2015

European equity markets opened lower this morning due to some profit taking following the strong upside rally yesterday. The DAX, CAC and London equity benchmark slid lower between 0.1% and 0.3% in early trade while the IBEX index retreated sharply over 2.2%. German industrial production retreated 0.1% in November against analysts’ expectations of a 0.3% rise. German exports also declined sharply 2.1% in November compared to a small fall of 0.5% in October.

The USD index held around 92.2 in early trade this morning against a basket of currencies, giving back part of yesterday’s sharp gains. The Euro hovered around 1.18 against the dollar, remaining under pressure following the ongoing political uncertainty in Greece with the upcoming elections in 2 weeks.   

The euro holds around 1.18

EUR Curncy (Euro Spot )  Daily 09 2015-01-09 09-01-18

Asian equity markets edged higher overnight, following the strong uptrend in US equities. The Dow Jones rallied over 300 points (+1.84%) to breach above 17,900 while the S&P 500 climbed higher 1.79%, recovering from recent losses in the last few trading sessions of the previous year. In Asia, the Nikkei index gained 30.60 points (+0.18%) to finish the session at 17,197.73, while the Hang Seng index climbed 0.35% higher towards 23,920.   

The Dow Jones index rallies above 17,900

INDU Index (Dow Jones Industrial 2015-01-09 09-02-39

Gold held above $1,210 in early trade this morning acting as safe haven, while silver fell towards $16.30. Platinum and palladium remained in positive territory adding over 0.4%.

XAU- Gold remains above the key area of $1,200

XAU Curncy (Gold Spot   $_Oz )  2015-01-09 09-03-23

The main focus will turn to the release of the US non-farm payrolls this afternoon, which will set the tone for today’s trading session in global equity and commodity markets.

 

Events for today:

 

0500

JP

Nov

Leading Index

0700

DE

Nov

Industrial Production

0700

DE

Nov

Trade Balance

0930

UK

Nov

Trade Balance & Non EU

0930

UK

Nov

Industrial Production

1330

US

Dec

NF Payrolls & Unemployment

1500

US

Nov

Wholesale Inventories

1500

UK

Dec

NIESR GDP Estimate

 

All times UK Local Time

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