Thursday, April 21:. That markets speak of
For investors, it seems that risk sentiment is to prevail until told otherwise.
Capital Markets continue to be inspired by a clear sign of stabilization in the space of commodities, while responding positively to the first reports of "earnings season.
Both Brent and WTI crude futures have rolled over in June with bullish momentum above. Other hard metals such as copper and silver continue to push to new heights of months of the session overnight.
In the FX space, volatility among the major pairs remain relatively subdued as dealers await the rate announcement by the ECB this morning.
1 conference rate announcement and press the Draghi ECB
Is it the calm before the storm? Euro stock prices remain contained as investors await the outcome of the European Central Bank (ECB) rate decision day within hours.
Although no new measures are expected in the April ECB meeting, the news conference of President Mario Draghi will be monitored closely for comments on the likelihood of future interest rate cuts and the strength of the 19-member single currency.
Draghi and company made their bazooka last month, a stimulus package that was designed to improve credit channels and not to weaken the currency in itself. Nevertheless, with the EUR managing to grind ever since the last meeting will only make the work of the ECB more difficult. A weaker EUR plays a role in guiding the eurozone to its inflation and growth. Do Draghi be able to cut (€ 1.0) wings of the EUR during his press conference? The market expects the tone of Draghi is favorable to the status quo, but how the status quo?
2. UK retail sales disappoint
UK data this morning showed that retail sales figures have decreased last month (-1.3% against 0%). The disappointing impression is further evidence that the UK economy slows in the race for the very important Brexit June 23 referendum.
The sale of security printing can now be added to the list of recent disappointing data points in the UK - the lowest figures for industrial production and the first increase in unemployment in 12 months. Today's issue suggests that U.K. consumer spending, the engine of recent economic growth weakened last month amid moderate wage growth and a darker economic outlook.
Sterling smaller businesses (£ 1.4315), near its lows of the day. The main market remains the U.K. referendum Expect the pound to remain at the thank you of uncertainty on the outcome of the Brexit. Is Sterling found support from Draghi's press conference?
3. Swedish Riksbank adds to its stimulus program
The SEK (€ 9.1491) rallied to highs several months against the euro after the Riksbank, this morning, the inmates interest rate unchanged and decided to buy a new SEK45b in government bonds in H2.
The statement of the Riksbank reiterated the view that he was ready to be more expansionary between meetings - further reduce the Repo rate in negative territory and even intervenes in the foreign exchange markets. He noted that the additional bond purchases to reduce the risk of SEK appreciate.
However, with the deputy governor Skingsley enter a "reserve" on the decision today combined with the market interpretation that buying QE announced a slower pace than the previous one, suggest that the Riksbank may be out of ammunition. By default, which gave SEK its tone and provides a strong impression 13 months.
4. Commodities to heights five months continues to support actions
The rising prices of products base continue to support global equities - equities worldwide jumped from three years of the lowest in February amid a recovery in oil and encouraging Chinese data. Rising world prices encouraged investors to take more risks.
Brent hovers top $ 46 a barrel after yesterday's data showed that US production has slipped. Even Iraq suggests that the talks freeze global production may occur next month's market bulls are eyeing a handful of $ 50.
Stocks in Japan peaked overnight two months and ended the day up 2.7% as a weaker yen (¥ 109.74) is ease pressure on equities Japanese exporters.
shares in Hong Kong and Australia also won, although the Shanghai Composite Index finished lower in volatile trade. The gathering of European stocks paused this morning as investors await the announcement of ECB rates and Draghi's press conference for market direction.
The higher crude prices helped push US stocks to close at new highs for the year. After a two-month rebound, the S & P 500 and Dow Industrial are both less than -1.5% on their record closes hit May 2015.
5. Relief rally Turkey takes a break
the Turkish lira was slightly lower against the dollar ($ 2.8245) and EUR (€ 3.1967) after the appreciation of yesterday the motto -50bps rate cut by the central bank. Central Bank Governor of Turkey, Murat Cetinkaya, began his term by accelerating a policy easing cycle in the face of slowing inflation and a currency stabilization. The MPC cut the overnight lending rate for the second consecutive month to + 10% from 10.5%, while maintaining the repo rate steady for a reference week to 7.5% and the borrowing rates overnight + 7.25%.
Relief rally yesterday of the TRY is assigned to the new governor did give in to political pressure and launch an aggressive cycle of monetary easing. fixed income dealers new prices 50-100bps reduced funding for the overnight rate may in the next two months.
[ad_2]
Read More: EUR’s Calm Before The Storm?
0 Komentar untuk "EUR’s Calm Before The Storm?"