Menu

Search

  |   Market Roundups

Menu

  |   Market Roundups

Search

Europe Roundup: Sterling consolidates below 1.2900 amid persisting concerns over economic outlook, euro gains on better-than-expected EZ trade surplus, European shares plunge - Friday, November 15th, 2019

Market Roundup

  • Eurozone October inflation confirmed slowing to 0.7%
     
  • Eurozone October trade surplus up
     
  • Gold falls on U.S.-China trade deal hopes
     

Economic Data Ahead

  • (0830 ET/1330 GMT) The U.S. Labor Department publishes import and export prices index for the month of October. The import prices are likely to have decreased 0.2 percent after rising 0.2 percent in September, while exports are expected to have edged down 0.1 percent after decreasing 0.2 percent in the prior month.
     
  • (0830 ET/1330 GMT) The U.S. Commerce Department is expected to report that retail sales rose 0.2 percent in October after declining 0.3 percent in September. While excluding autos, retail sales are likely to have gained 0.4 percent, after easing 0.1 percent in the previous month.
     
  • (0830 ET/1330 GMT) Statistics Canada will report foreign portfolio investment in domestic stocks for the month of September.
     
  • (0830 ET/1330 GMT) Statistics Canada will release investment in foreign securities figures for the month of September.
     
  • (0915 ET/1415 GMT) The Federal Reserve is likely to report that industrial production eased 0.4 percent in October.
     
  • (0915 ET/1415 GMT) The Federal Reserve Board is expected to report that capacity utilization edged down to 77.1 percent in October from 77.5 percent in September.
     
  • (1000 ET/1500 GMT) The U.S. Commerce Department is expected to report that business inventories rose 0.1 percent in September.
     
  • (1300 ET/1800 GMT) Baker Hughes reports U.S. Oil Rig Count. 
     

Key Events Ahead

  • (1200 ET/1700GMT) German Buba President Weidmann's speech

FX Beat

DXY: The dollar index eased to a 1-week low amid persisting concerns over the health of the U.S. economy. The greenback against a basket of currencies traded flat at 98.13, having touched a high of 98.45 on Wednesday, its highest since October 15.

EUR/USD: The euro surged, extending previous session gains after data showed Eurozone posted in September a larger surplus in its trade with the rest of world, as exports grew more than imports.  The European currency traded 0.1 percent up at 1.1030, having touched a low of 1.0989 on Thursday, its lowest since October 15. Immediate resistance is located at 1.1042, a break above targets 1.1062. On the downside, support is seen at 1.0985, a break below could drag it below 1.0957.

USD/JPY: The dollar rebounded from an over 1-week low after bullish comments from a White House official on U.S.-China trade talks boosted appetite for riskier assets. On Thursday, White House economic adviser Larry Kudlow said Washington and Beijing were getting close to a trade agreement. The major was trading 0.2 percent up at 108.64, having hit a low of 108.24 on Thursday, its lowest since November 4. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. retail sales, capacity utilization rate and business inventories. Immediate resistance is located at 108.89 (5-DMA), a break above targets 109.15 (November 13 High). On the downside, support is seen at 108.29, a break below could take it near at 108.03.

GBP/USD: Sterling consolidated within narrow ranges as investors’ hopes for a Conservative majority in the December 12 election were tempered by concerns about the broader economic outlook. The major traded flat at 1.2874, having hit a high of 1.2897 on Monday, it’s highest since November 5. Investors’ attention will remain on the development surrounding Brexit, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2904, a break above could take it near 1.2972 (November 1 High). On the downside, support is seen at 1.2856 (10-DMA), a break below targets 1.2806. Against the euro, the pound was trading 0.2 percent down at 85.68 pence, having hit a high of 85.44 on Thursday, it’s highest since May 7.

USD/CHF: The Swiss franc declined after rising to a 10-day high in the previous session, as risk sentiment improved following upbeat comments from a White House official on U.S.-China trade talks. The major trades at 0.1 percent up at 0.9891, having touched a low of 0.9870 on Thursday, it’s lowest since November 4. On the higher side, near-term resistance is around 0.9936 and any break above will take the pair to the next level till 0.9983. The near-term support is around 0.9855, and any close below that level will drag it till 0.9815.

Equities Recap

European shares decline after data showed Euro zone’s headline inflation slowed in October as energy prices fell drastically.

The pan-European STOXX 600 index tumbled 0.8 percent at 405.04 points, while the FTSEurofirst 300 slumped 0.2 percent to 1,582.04 points.

Britain's FTSE 100 trades 0.6 percent down at 7,247.07 points, while mid-cap FTSE 250 declined 0.3 to 20,175.83 points.

Germany's DAX rose 0.1 percent at 13,192.28 points; France's CAC 40 trades 0.3 percent higher at 5,916.37 points.

Commodities Recap

Crude oil prices declined as the U.S., production kept on rising, however, the downside appears limited as OPEC’s outlook for oil demand next year fuelled hopes that the producer cartel and its associates will limit supply when they meet to discuss policy on output next month. International benchmark Brent crude was trading 0.8 percent down at $61.83 per barrel by 1103 GMT, having hit a high of $63.19 on Thursday, its highest since November 6. U.S. West Texas Intermediate was trading 0.6 percent lower at $56.55 a barrel, after rising as high as $57.75 on Thursday, its highest since November 7.

Gold prices tumbled as risk appetite improved by comments from White House economic adviser Larry Kudlow that the United States is nearing an interim trade pact with China. Spot gold was trading 0.3 percent down at $1,466.56 per ounce by 1107 GMT,  having touched a higher of $1,474.52 on Thursday, its highest November 7, but was set to rise about 0.4 percent this week. U.S. gold futures were down 0.6 percent at $1,464.30 per ounce.

Treasuries Recap

The U.S. Treasuries suffered during the afternoon session ahead of the country’s retail sales for the month of October, scheduled to be released today by 13:30GMT. In addition, a host of 2-tier economic data are also lined up for release through the day, which shall add further direction into the debt market. The yield on the benchmark 10-year Treasury yield surged 2 basis points to 1.834 percent, the super-long 30-year bond yield rose 1-1/2 basis points to 2.313 percent and the yield on the short-term 2-year traded tad 1 basis point higher at 1.604 percent.

The United Kingdom’s gilts fell during European trading hours amid a muted trading session that witnessed data of little economic significance. The yield on the benchmark 10-year gilts, rose 1 basis point to 0.722 percent, the 30-year yield slipped jumped 2 basis points to 1.257 percent and the yield on the short-term 2-year traded nearly flat at 0.532 percent.

The German bunds remained mixed during European session of the last trading session of the week after the eurozone’s consumer price inflation (CPI) for the month of October remained unchanged from that in September, also meeting market expectations. The German 10-year bond yield, which move inversely to its price, hovered around -0.338 percent, the yield on 30-year note edged nearly 1 basis point up to 0.145 percent and the yield on short-term 2-year slipped 1 basis point to -0.649 percent.

  • Market Data
Close

Welcome to EconoTimes

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