Daily Briefing – Tuesday, May 16, 2017
The Euro is trading higher this morning as expectations rise ahead of today’s data from Italy, Germany, the UK and the EU. The pound is also reaching upwards and is currently above its 50 day moving average.
China has suspended bond trading after one government issued bond began exhibiting abnormal fluctuations. The Japanese yen gained some ground yesterday after central bank chief Haruhiko Kuroda said stimulus had been “going well” and should be soon wound down. Indexes otherwise were up overnight on Wall Street strength – the Shanghai Composite leading with a 0.75% gain – its 4th day of gains thanks to central bank efforts to increase liquidity.
The US Dollar lost ground overnight and is now dropping below the 98.50 mark due to the rise in commodities currencies thanks to the recent surge in oil prices. It has also been losing against the Euro due to weak data, including yesterday’s disappointing manufacturing index. Both the S&P and Nasdaq closed yesterday high thanks to energy assets.
Oil yesterday soared above the $49 mark after Saudi and Russian oil ministers stated their favor for a 9-month extension of the oil production freeze. They are now 13% up in 7 days. Meanwhile, gold was at a 2-week high due to continuing tensions over North Korean missile launches.
Vodofone shares rose by 2.6% in spite of quarterly results showing a 6.1bn euro loss were reported to the London Stock Exchange this morning. . At present, the FTSE is the only major European index colored green – the DAX, CAC and Eurostoxx50 all down about a1/10th%. Today, Cisco reports to the NYSE, and Alibaba and Walmart report tomorrow.
|8:30 AM GMT||UK: CPIs, PPIs, Retail Prices & House Prices|
|9 AM GMT||Germany: ZEW Economic Sentiment|
|9 AM GMT||EU: Trade Balance, GDP & ZEW Economic Sentiment|
|12:30 PM GMT||US: Housing starts followed by Redbook Index at 12:55 and Industrial Production at 1:15|
|0:30 AM GMT (+1)||Australia: Consumer Confidence|