Menu

Search

  |   Market Roundups

Menu

  |   Market Roundups

Search

Europe Roundup: Sterling hits 1-week low on Q4 GDP, dollar index at 1-week peak on Fed minutes, European shares slump - Thursday, February 22nd, 2018

Market Roundup

  • United Kingdom Feb CBI distributive trades decrease to 8 (forecast 13 ) vs previous 12
     
  • Italy Jan CPI (EU norm) final mm stays flat at -1.5 % (forecast -1.6 %) vs previous -1.5 % (revised from -1.6 %)
     
  • Italy Jan CPI (EU norm) final yy stays flat at 1.2 % (forecast 1.1 %) vs previous 1.2 % (revised from 1.1 %)
     
  • Italy Jan consumer prices final yy stays flat at 0.9 % (forecast 0.8 %) vs previous 0.9 % (revised from 0.8 %)
     
  • Italy Jan consumer prices final mm stays flat at 0.3 % vs previous 0.3 % (revised from 0.2 %)
     
  • United Kingdom Q4 gdp 2nd release yy decrease to 1.4 % (forecast 1.5 %) vs previous 1.5 %
     
  • United Kingdom Q4 business invest yy prelim increase to 2.1 % (forecast
     
  • United Kingdom Q4 gdp 2nd release qq decrease to 0.4 % (forecast 0.5 %) vs previous 0.5 %
     
  • Germany Feb IFO expectations decrease to 105.4 (forecast 107.9 ) vs previous 108.4
     
  • Germany Feb IFO current conditions decrease to 126.3 (forecast 127 ) vs previous 127.7
     
  • Germany Feb IFO business climate decrease to 115.4 (forecast 117 ) vs previous 117.6
     
  • Italy Dec industrial orders yy nsa decrease to 6.9 % vs previous 8.9 %
     
  • Italy Dec industrial sales yy wda increase to 7.2 % vs previous 5.1 %
     
  • Italy Dec industrial sales mm sa increase to 2.5 % vs previous 1.4 % (revised from 1.3 %)
     
  • Italy Dec industrial orders mm sa increase to 6.5 % vs previous 0.4 % (revised from 0.3 %)
     
  • Switzerland q4 industrial orders yy increase to 19.6 % vs previous 9.7 % (revised from 5.5 %)
     
  • France Jan inflation ex-tobacco mm decrease to -0.1 % vs previous 0.3 %
     
  • France Jan inflation ex-tobacco idx decrease to 101.67 vs previous 101.76

Economic Data Ahead

  • (0830 ET/1330 GMT) The number of Americans filing for unemployment benefits is likely to have remained unchanged to a seasonally adjusted 230,000 for the week ended Feb. 16, while continuing claims for the week ended Feb. 9 is expected to decline to 1.930 million from previous reading 1.942 million.
     
  • (0830 ET/1330 GMT) Statistics Canada is expected to report that retail sales gained 0.2 percent in December after posting similar gains in November. While excluding autos, retail sales are likely to have risen 0.3 percent, after advancing 1.6 percent in the previous month.
     
  • (1030 ET/1530 GMT) The Energy Information Administration (EIA) reports its Natural Gas Storage for the week ending February 16.
     
  • (1100 ET/1600 GMT) The Energy Information Administration (EIA) reports its Crude Oil Stocks for the week ending February 16.
     
  • (1100 ET/1600 GMT) Federal Reserve Bank of Kansas City issues manufacturing activity index for the month of February. The indicator stood at 16 in the previous month.
     
  • (1830 ET/2330 GMT) Japan's Statistics Bureau will release its National Consumer Price Index for the month of December. The index rose at an annualized rate of 0.8 percent in November.

Key Events Ahead

  • (1000 ET/1500 GMT) President of the New York Federal Reserve William Dudley will address the central bank's response to planned congressional spending and recent signs of inflation.
     
  • (1210 ET/1710 GMT) President of the Federal Reserve Bank of Atlanta Raphael W. Bostic's speech
     
  • (1530 ET/2030 GMT) Dallas Federal Reserve Bank President Robert Kaplan gives a speech at Vancouver Board of Trade's "Beyond NAFTA".

FX Beat

DXY: The dollar index slightly eased after rising to a 1-week peak earlier on the minutes of the U.S. Federal Reserve’s January meeting that showed policymakers confident in rising inflation and the need for interest rates to keep increasing.The greenback against a basket of currencies traded 0.1 percent down at 90.05, having touched a high of 90.24, its highest since Feb. 13. FxWirePro's Hourly Dollar Strength Index stood at 74.40(Bullish) by 1000 GMT.

EUR/USD: The euro retreated after falling to a 10-day low earlier in the session on data showing German business confidence fell more than expected in February. The Munich-based IFO economic institute said its business climate index fell to a 5-month low of 115.4 from 117.6 in January. The European currency traded 0.1 percent up at 1.2292, having touched a low of 1.2259 earlier, its lowest since Feb. 14. FxWirePro's Hourly Euro Strength Index stood at 23.31 (Neutral) by 100 GMT. Immediate resistance is located at 1.2353 (10-DMA), a break above targets 1.2400. On the downside, support is seen at 1.2245 (Feb 7 Low), a break below could drag it lower 1.2205 (Feb 9 Low).

USD/JPY: The dollar slumped from a 1-week high hit in the previous session on renewed worries over the U.S. budget deficit which is expected to rise to near $1 trillion in 2019. The major was trading 0.4 percent down at 107.31, having hit a high of 107.90 the day before, its highest since Feb.14. FxWirePro's Hourly Yen Strength Index stood at 13.77 (Neutral) by 1000 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. unemployment benefit claims. Immediate resistance is located at 108.59 (38.2% retracement of 110.48 and 105.74), a break above targets 109.30 (23.6% retracement). On the downside, support is seen at 106.81  (5-DMA), a break below could take it lower 106.09.

GBP/USD: Sterling tumbled to a 1-week low after data showed Britain's economy was weaker than previously thought in 2017. The economy's gross domestic product growth slowed to a quarterly 0.4 percent from a previous estimate of 0.5 percent, reducing 2017 growth as a whole to 1.7 percent, its lowest since 2012. The major traded 0.2 percent down at 1.3886, having hit a low of 1.3870 earlier, it’s lowest since Feb 14. FxWirePro's Hourly Sterling Strength Index stood at -126.15 (Highly Bearish) by 1000 GMT. Immediate resistance is located at 1.4008 (5-DMA), a break above could take it near 1.4144 (Feb 16 High). On the downside, support is seen at 1.3845 (Feb 8 Low), a break below targets 1.3800. Against the euro, the pound was trading 0.3 percent down at 88.49 pence, having hit a high of 88.05 pence on Tuesday, it’s highest since Feb. 9.

USD/CHF: The Swiss franc rebounded after falling to a near 2-week low as the risk-off sentiment around the equity market supported safe-haven assets. The major trades 0.1 percent up at 0.9379, having touched a high of 0.9409, it’s highest since Feb. 9. FxWirePro's Hourly Swiss Franc Strength Index stood at -74.33 (Slightly Bearish) by 1000 GMT. On the higher side, near-term resistance is around 0.9467 and any break above will take the pair to next level till 0.9500. The near-term support is around 0.9306 (5-DMA) and any close below that level will drag it till 0.9210.

Equities Recap

European shares tumbled, weighed down by a flurry of corporate results that failed to lift sentiment, while the greenback slight eased after rising to 1-week on speculation that the Fed will hike rates next month.

The pan-European STOXX 600 index slumped 0.7 percent to 378.50 points, while the FTSEurofirst 300 index eased 0.6 percent to 1,483.68 points.

Britain's FTSE 100 trades 0.9 percent lower at 7,219.97 points, while mid-cap FTSE 250 declined 0.6 percent to 19,671.54 points.

Germany's DAX fell 0.8 percent at 12,375.62 points; France's CAC 40 trades 0.4 percent down at 5,282.83 points.

Commodities Recap

Crude oil prices rose, extending previous session gains despite a firmer dollar outweighing a report of a decrease in U.S. crude inventories. International benchmark Brent crude was trading 0.2 percent up at $65.22 per barrel by 1036 GMT, having hit a high of $65.86 on Monday, its highest since Feb. 8. U.S. West Texas Intermediate was trading 0.1 percent up at $61.36 a barrel, after rising as high as $62.62 the day before, its strongest since Feb. 8.

Gold prices edged lower for the fifth consecutive session as the dollar rallied after the minutes of the last U.S. Federal Reserve meeting showed policymakers backed further interest rate hikes. Spot gold was down 0.1 at $1,323.80 an ounce at 1037 GMT, having fallen to its lowest level since Feb. 14 at $1,320.85 earlier. U.S. gold futures were down 0.6 percent at $1,324.30 per ounce.

Treasuries Recap

The 10-year U.S Treasury yield stood at 2.929 percent lower by 0.011 bps, while 5-year yield was 0.012 bps down at 2.672 percent.

The yield on Greece's 10-year government bond dropped 6.5 basis points to 4.41 percent, while its five-year borrowing costs fell 3 bps to 3.63 percent at the open.

The Australian government bond futures were mixed, with the three-year bond contract up 1 tick at 97.865. The 10-year contract fell 1.5 ticks to 97.1300.

The New Zealand government bonds eased, sending yields 2.5 basis points higher at the long end of the curve.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.