Stock crash recovery after plunge
February 7, 2018
Europe Market Movements
The pound has recovered somewhat this morning, trading at 1.3984 this morning at 7:11 GMT, up from a low of 1.3847 yesterday afternoon. Sterling also fell by 0.4% against the EUR yesterday, to a three week low of 89.10 pence, before staging a slight recovery. Traders will be watching closely this morning’s ECB Non-monetary policy meeting and the Bank of England’s policy meeting and inflation report tomorrow.
US Market Movements
The USD has been rising against its Japanese counterpart, trading at 109.163 this morning at 7:28 GMT, up from a low of 108.502 early yesterday morning. It’s lost some ground against the EUR however, with it rising by 0.05% against the USD. The euro is now trading at 1.2391, up from 1.2324 yesterday afternoon. Canada’s Ivey PMI fell and its trade deficit widened. The USD has risen against the CAD. Keep an eye on Canadian Building Permits today and the EIA Crude Oil stocks, both of which can move the loonie.
Asia/Oceania Market Movements
The JPY has reversed its losses against the USD. On the radar screen, Japan’s trade balance for December due for release overnight. Also to be released overnight the Australian NAB business confidence index and significant data from New Zealand. Watch AUD and NZD currency pairs tonight (GMT).
Bitcoin has not recovered from its latest crash and is now trading at $6,166. Ethereum is trading at $590, down from a peak of $1402.44 on January 13. Noted Economist Nouriel Roubini is quoted as saying that the price of bitcoin is going to zero. Gold has fallen fell to a 2-1/2-week low on Tuesday, as investors focused on expectations for higher U.S. interest rates. The price of WTI and Brent both fell yesterday, how will they react to today’s EIA Crude Oil stocks?
Stocks have started to stage a rebound after Monday’s wild ride. The Dow Jones closed yesterday up 567 points, the S&P 500 was up 1.7 % and the Nasdaq Composite added 148.36 points. In Asia this morning, the MSCI index rose 2% in early trade and the Nikkei is up 0.2%.
|08:30 GMT||GBP: Halifax HPI|
|15:30 GMT||Crude Oil Inventories|
|20:00 GMT||NZD: Rate Statement; Interest Rate Decision|