Daily News

Daily Briefing – Monday, March 20, 2017

Europe

European indexes are set to start the week with futures up – mostly less than a percent – across the board – this following Thursday’s 15-month record high after the Dutch elections. Exports in Germany are under threat following the failure of G20 leaders to agree on steps to fight protectionism and aid free trade. The wording of the final document is being seen as a victory for an increasingly protectionist US over free-trade espousing Germany and Japan. Finance ministers from across the Eurozone will meet today in Brussels to discuss the Greek bailout and relations with the International Monetary Fund. In the UK, home prices have been rising owing to a dearth of inventories. March prices are up 1.3%. As the Brexit calling Article 50 gets closer to being enacted, the contention over a renewed referendum on independence for Scotland grows bitter. Currently, an on-line petition has amassed 30,000 of the required 100,000 votes to require a parliamentary debate on the issue, as Theresa May launches a cross-island tour beginning today with Wales, then continuing to Scotland and Northern Ireland, where Sinn Fein is also sounding out for an independence referendum.

US

The US dollar begins the week weaker against peers following last week’s interest rate hike. This week, a slew of speeches from Federal Reserve heads will hopefully provide guidance following what many see as a relatively dovish interest rate hike. For now, the odd on an additional hike in May are nil and 50-50 for June.

Asia

Asian equities ended this morning’s session mixed with trading think after Wall Street contionued its decline and the G20 retreated from earlier bids to fight protectionism. Investor sentiment is declining, though still positive, with the Hang Seng up 0.7%, the Nikkei down 0.35% and Chinese benchmarks down about a tenth. China’s foreign exchange regulator this morning warned against risky overseas investments. The government has been trying to battle capital flight, thus eroding investor confidence. Home prices unexpectedly rebounded in February, based on Saturday’s report from the nation’s Bureau of Statistics – this in spite of Friday’s decision to raise down-payment requirements. Economists fear that a bursting Cinese real estate bubble could echo throughout the global economy.

 

Commodities

Bitcoin came down 20% off recent $1259 highs on Sunday and was trading at $970 as rifts in the developer community threaten a split of the virtual currency. The point of contention is a proposed increase in the transaction processing size from its current 1 mB. And oil overnight was down again as the Hughes Baker count showed an additional 14 active oil rigs in the US. WTI is currently at $48.90 and Brent $51.41 per barrel. Gold jumped by $30 per troy ounce on Friday and continues trending leisurely upward as the USD weakens.

Shares

DeutscheBank has announced that it will sell shares at a 35% discount in a bid to raise 8 bn Euros. The sale is expected to begin tomorrow. And IBM has announced the adoption of blockchain technology that will enable the creation of applications using “blockchain code”.

 

Week’s Events

11 AM GMT

Germany: Bundesbank Buba report on current & future economic conditions

5:10 PM GMT

US: Speech by Chicago Federal Reserve head, Charles Evans

0:30 AM GMT (+1)

Australia: House Prices and Central Bank meeting minutes

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1 Comment

  1. April 17, 2017 at 5:17 am — Reply

    J’aime cet article, je vous remercie

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