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Europe Roundup: Euro recovers back above $1.09 level,European stocks slide, Gold gains, Oil prices fall for fifth day to lowest in a year-February 27th,2020

Market Roundup

• EU Feb Business and Consumer Survey  103.5, 102.8 forecast, 102.6 previous

• EU Feb Business Climate  -0.04, -0.28 forecast, -0.19 previous 
    
• Belgium Feb CPI (YoY)  1.10%,1.41% previous    

• Belgium Feb CPI (MoM)  0.02%    , 0.60% previous 
   
Looking Ahead - Economic Data (GMT)  
 
• Russia    Central Bank Reserves (USD) 562.4B previous

• US Jan Core Durable Goods Orders (MoM)  0.2% forecast, -0.1% previous

• US Core PCE Prices (Q4) 1.30%    , 1.30%    previous

• US Jan     Durable Goods Orders (MoM)  -1.5%,2.4% previous

• US GDP (QoQ) (Q4)  2.1%,2.1% previous

• US GDP Price Index (QoQ) (Q4) 1.4%,1.5% previous

• US Initial Jobless Claims  212K, 210K previous

• US Jobless Claims 4-Week Avg    209.00K previous

• Canada Current Account (Q4) -9.0B forecast, -9.9B previous

• US Jan Pending Home Sales (MoM ) 2.2% forecast, -4.9% previous

• US Feb KC Fed Composite Index  -1 previous

Looking Ahead - Economic events and other releases (GMT)

• 16:00 Eurozone ECB's De Guindos Speaks

• 20:30    FOMC Member Mester Speaks                                  

Fx Beat  
 
EUR/USD: The euro gained against dollar on Thursday  as investors bet the Federal Reserve would cut interest rates to offset the impact of the spreading coronavirus, lifted the euro to its highest in more than two weeks. Expectations for a European Central Bank rate cut have also risen; money markets now price a more than 80% chance of a 10 basis point rate cut in July. The euro rose 0.6% to $1.0948. Last week it had dropped below $1.08, although it remains down 2.4% so far in 2020. . Immediate resistance can be seen at 1.0966 (Daily high), an upside break can trigger rise towards 1.1029 (50 DMA).On the downside, immediate support is seen at 1.0878  (5 DMA), a break below could take the pair towards 1.0800 (Psychological level).

GBP/USD:  Sterling dipped against dollar on Thursday  as disappointment grew over the prospect of Britain’s new finance minister not providing the fiscal stimulus he had been expected to next month. The pound was last trading 0.07 % lower to $1.2888, against the euro it fell 0.4% to 84.67 pence. It was also weaker against the safe-haven Japanese yen, which rose to a two-week high of 142.30 versus the pound.  Immediate resistance can be seen at 1.2935 (5 DMA), an upside break can trigger rise towards 1.3025 (50 DMA).On the downside, immediate support is seen at 1.2858 (Daily low), a break below could take the pair towards 1.2800 (Psychological level).

USD/CHF: The dollar dipped against the Swiss franc on Thursday as worries over the spread of the coronavirus aggravated fears of an economic slowdown. The effects of the outbreak are likely to reverberate beyond China as most major economies in the region are expected to either slow significantly, halt or shrink in the current quarter. At (GMT 12:29), Greenback dipped 0.78% versus the Swiss franc to 0.9689. Immediate resistance can be seen at 0.9700 (Psychological level), an upside break can trigger rise towards 0.9757 (9 DMA).On the downside, immediate support is seen at 0.9676 (5 Feb low), a break below could take the pair towards 0.9600 (Psychological level).

USD/JPY: The dollar declined against the Japanese yen on Thursday as the rapid global spread of the coronavirus kept investors on edge and drove them towards safe haven assets.Rising fears of a pandemic, which U.S. health authorities have warned is likely, had already wiped more than $3.6 trillion from global stock markets by Wednesday’s close.China accounts for about 96% of cases and has instituted dire containment methods that have paralysed global supply chains. Strong resistance can be seen at 110.55 (5 DMA), an upside break can trigger rise towards 110.68 (9 DMA).On the downside, immediate support is seen at 109.60 (50 DMA), a break below could take the pair towards 109.00  (Psychological level). 

Equities Recap

European shares fell again on Thursday, with travel stocks taking the biggest knock, as a jump in new coronavirus cases outside of China deepened fears of a pandemic that could dent global growth.
    
At (GMT 13:07),UK's benchmark FTSE 100 was last trading lower at 2.60 percent, Germany's Dax was down by 2.66 percent, France’s CAC was last up by 2.95 percent.

Commodities Recap

Gold prices rose on Thursday as the rapid spread of coronavirus outside China fuelled demand for safe-haven assets and bolstered bets for interest rate cuts by major central banks, while palladium scaled an all-time high on supply deficit worries.

Spot gold rose 0.6% to $1,648.63 per ounce by 0836 GMT. Prices jumped more than 1% in intraday trade on Wednesday before closing 0.3% higher.U.S. gold futures were up 0.5% at $1,650.50.

Oil prices fell over 2% on Thursday, plunging for a fifth day to their lowest since January 2019 as a rise in new coronavirus cases outside China fueled fears of a pandemic that could slow the global economy and dent demand for crude.

Brent crude   was down $1.15, or 2.2%, at $52.28 a barrel at 1150 GMT. West Texas Intermediate (WTI) futures   fell by $1.04 cents, or 2.1%, to $47.69 a barrel.

Treasuries Recap

European government bond yields fell on Thursday, with German benchmark debt yields near their lowest in more than four months, as the spread of the coronavirus undermined risk sentiment.

Yields on benchmark German 10-year maturities fell to -0.5140%, just above an early October low of -0.472% reached in the previous session.
 

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