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European markets down in slow day after G20 weekend

The German DAX 30 (+0.17%) but is alone in its quest to the upside. European markets are down in the G-20 hangover: the French CAC 40 (-0.23%), the Italian FTSE MIB (-0.77%), the Spanish IBEX 35 (0.86%). Ahead is ECB Draghi's speech at 14:30 GMT. Investors don't expect much of the rest of the day, with an empty economic calendar and US and Canada markets out of the picture, on holidays. Futures for the American S&P 500, Nasdaq 100 and Dow Jones are trading flat.

The G20 meeting didn't put a headlight at Japan and its policy intentions, but the message of not entering a "currency war" was clear. However, before the Japanese Parliament, PM Abe has already considered removing the BoJ’s independence should the central bank fail to achieve 2% inflation.

Seasonally adjusted current account in the Eurozone shows a narrower surplus from €15.9B (revised from €14.8B) to €13.9B in December, still higher than the expected €13.9B. Non-adjusted data widened from €20.8B (revised from €19.8B) to €27B, coming lower than the expected €30B.

The Bank of Spain updated its bad bank loans information, indicating an improvement from 11.4% to 10.4% in December.

Forex Flash: GBP/USD may rebound to 1.5575 today - Commerzbank

Commerzbank analysts are targeting 1.5271/35 (2012 low) this week, after having sold off and broken below the 1.5642 2009-2013 uptrend. "This is also the 50% retracement of the move since 2009 located here. This will be a key magnet for price and we would expect it to hold the initial test", wrote analyst Karen Jones, pointing out that only above 1.5728 would the pair alleviate immediate downside pressure for recovery towards the 200 day ma at 1.5865. "For today we would allow for a tiny rebound, and look for this to terminate circa 1.5575", Jones added.
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Forex Flash: RBNZ rate hike expected within 12 months time – BNZ

Across the swap curve, now, NZ yields have convincingly broken out of their eight-month ranges. A string of stronger-than-expected domestic data releases saw NZ swap yields rise 13-20bps last week – Friday’s strong retail sales data was sufficient to boost NZ swap yields a further 2-5bps.
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