|   Market Roundups


  |   Market Roundups


Europe Roundup:Sterling recovers from 2-1/2 month low following economic growth data, European stocks rise,Gold eases from 1-week high,Oil rises from 13-month low-February 11th,2020

Market Roundup

•UK Business Investment (QoQ) (Q4)  -1.0%,-0.6% forecast, 0.2% previous

• U.K. Dec Construction Output (YoY)  5.0%,3.6% forecast, 2.6% previous

•UK GDP (YoY) (Q4)  1.1%,0.8% forecast, 1.2% previous

•UK GDP (MoM) 0.3%,0.2% forecast, -0.3% previous

•UK GDP (QoQ) (Q4)  0.0%,0.0%               forecast, 0.5% previous

•UK Dec Manufacturing Production (MoM)  0.3%,0.5% forecast, -1.6% previous

•UK Dec Trade Balance  0.85B, -10.00B forecast,-4.95B previous

Looking Ahead - Economic Data (GMT) 

•13:55 US Redbook (YoY) 5.7%  previous

•13:55 US Redbook (MoM) 0.2% previous

•15:00 US JOLTs Job Openings  7.000M forecast, 6.800M previous            

Looking Ahead - Events, Other Releases (GMT)

•13:50 ECB President Lagarde Speaks    

•15:00 US Fed Chair Powell Testifies      

•17:15 US FOMC Member Quarles Speaks

•18:00 US FOMC Member Bullard Speaks

•19:15   US FOMC Member Kashkari Speaks                                       
Fx Beat

EUR/USD: The euro was little changed against the U.S. dollar on Tuesday, as investors assessed how quickly China’s factories could return to work as the coronavirus continues to spread and deaths mount. China’s factories were struggling to re-open after an extended break and analysts warned that investors might be underestimating the economic damage, but the mood remained strong after another Wall Street surge overnight. China’s Hubei province, the epicentre of a coronavirus outbreak, reported 2,097 new cases and 103 new deaths on Feb. 10, the local health authority said on Tuesday. The euro was up 0.02 percent at $1.10914. Immediate resistance can be seen at 1.0948 (5 DMA), an upside break can trigger rise towards 1.0995 (9 DMA).On the downside, immediate support is seen at 1.0900 (Psychological level), a break below could take the pair towards 1.0877 (Oct 1st low).

GBP/USD: Sterling enjoyed some respite on Tuesday after British economic growth showed no change in the fourth quarter in spite of market expectations it would be slower.But the currency remained around its lowest levels for this year amid uncertainty over Britain’s trade relationship with the European Union.Preliminary data for fourth-quarter gross domestic product showed the economy grew 1.1% year-on-year, the same as in the previous quarter. Economists polled by Reuters had forecast growth of only 0.8%. Sterling was last trading just above $1.2900, close to the 2-1/2-month low of $1.2873 it fell to on Monday, mostly on the back of a strong dollar. Immediate resistance can be seen at 1.2934 (5 DMA), an upside break can trigger rise towards 1.3009 (11 DMA).On the downside, immediate support is seen at 1.2859 (Lower BB), a break below could take the pair towards 1.2800 (Psychological level).

USD/CHF: The dollar strengthened against the Swiss franc on Tuesday, as subdued price swings encouraged hedge funds to load up on the relatively high-yielding greenback. Market volatility have fallen sharply in recent months, prompting investors to borrow in low-yielding currencies such as the euro and the franc and invest in dollars or other high-yielding currencies. The dollar rose 0.01% to 98.91 against a basket of its rivals, its highest level since early October and less than 1% away from a 2019 high of 99.67. Immediate resistance can be seen at 0.9795 (Higher BB), an upside break can trigger rise towards 0.9843(100 DMA).On the downside, immediate support is seen at 0.9761 (5 DMA), a break below could take the pair towards 0.9718 (9 DMA).

USD/JPY: The dollar strengthened against the Japanese yen on Tuesday, as safe-haven demand broadly shifted to the dollar. The U.S. dollar held above a four-month high as doubts lingered about how quickly China’s factories could get back to work after the country reported 108 new deaths. In the United States, two Federal Reserve policy markers played down the impact of the virus on the domestic economy, with focus now on Fed Chair Jerome Powell’s testimony before Congress.Powell is likely to sound fairly upbeat about the outlook for U.S. economic growth, even as he nods to the potential threat from the coronavirus in China. Strong resistance can be seen at 110.02 (7th Feb high), an upside break can trigger rise towards 110.58 (Higher BB).On the downside, immediate support is seen at 109.42 (9 DMA), a break below could take the pair towards 109.00 (Psychological level).

Equities Recap

European stocks resumed rising towards record highs on Tuesday and the dollar reached a four-month high as China’s top medical advisor said the coronavirus epidemic may plateau in the next few weeks.

At (GMT 12:50),UK's benchmark FTSE 100 was last trading lower at 0.15 percent, Germany's Dax was down by 0.26 percent, France’s CAC finished was down by 0.35 percent.

Commodities Recap

Gold eased from a near one-week high hit in the previous session on Tuesday, as safe-haven demand broadly shifted to the dollar.

Spot gold fell 0.3% to $1,567.16 per ounce by 0801 GMT. The metal touched its highest since Feb. 4 at $1,576.76 on Monday. U.S. gold futures fell 0.4% to $1,572.30.

Oil rose to $54 a barrel on Tuesday, recovering from a 13-month low as the number of new coronavirus cases slowed in China, easing some concerns about lengthy destruction of oil demand.

Brent crude   rose $1.07 to $54.34 a barrel by 1216 GMT, having dropped on Monday to its lowest since January last year at $53.11. U.S. West Texas Intermediate  crude was up 89 cents at $50.46.

Treasuries Recap

Euro: Government bond yields across the euro area rose on Tuesday in response to gains by world stock markets, but did not venture too far from recent lows in a sign of underlying caution among investors. Analysts said concerns that coronavirus will hurt the world economy, alongside political uncertainty in Germany, continued to underpin bond markets. But for now further falls in bond yields, and price rises, were difficult in the face of rallying equity markets. Asian share markets followed Wall Street up on Tuesday, while European stocks opened broadly higher. In early trade, most 10-year bond yields were 1 to 2 basis points higher on the day. Germany’s benchmark Bund yield was up 1.6 bps at -0.398%, not far off a low of -0.41% hit on Monday. Elsewhere, Italy was expected to issue a new 15-year bond via a syndicate of banks.

U.S.: Continued demand for safe-haven assets from investors nervous about the economic damage caused by the coronavirus outbreak drove yields lower on Monday, inverting one measure of the yield curve. The spread between yields of three-month and 10-year Treasuries was at minus 1.21 basis points in afternoon trade, having inverted earlier in the day. The spread was below zero for several days last week. Treasury debt, which serves as a safe-haven investment in times of geopolitical and economic volatility, has been in demand since the start of the year. The 10-year Treasury yield has fallen 18.7% since Dec. 31. It was last 2.5 basis points lower to 1.553%. Across maturities Treasury yields were lower, with the two-year note yield down 2 basis points to 1.379% and the 30-year bond yield down 1.9 basis point to 2.024%.

  • Market Data

Welcome to EconoTimes

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