OctaFX | OctaFX Forex Broker
Open trading account

European markets cheer China trade data

The German DAX 30 (+0.22%), the French CAC (+0.49%), the Italian FTSE MIB (+0.78%) and the Spanish IBEX 35 (+0.80%) are edging higher on Friday as the European Council meets for a 2014-2020 budget decision on how to spend around €960B.

Investors cheered China's trade data, with both imports (25.0% vs 17.0% consensus) and exports (28.8% vs 23.3% consensus) coming in higher than expected in January, as well as the trade surplus (29.2B vs 22.0B consensus).
German trade data came out with wider than expected surplus (€16.8B vs €14.8B consensus) and current account (€17.3B vs €17.0B consensus). December (MoM) exports (+0.3% vs +1.3% consensus) and imports (-1.3% vs -1.4% consensus) disappointed.

The Italian industrial output improved from -7.7% to -6.6% in December (consensus of -7.2%), with a +0.4% monthly growth. The Greek CPI eased from 0.8% to 0.2% in January (YoY) and industrial production bounced from -3.2% (revised from -2.9%) to -0.5% in November.

Swiss real retail sales rose from 3.0% (revised from 2.9%) to 5.1% in December, beating 3.2% consensus. The French budget has narrowed its deficit in December, from €103.4B to €87.2B.

Futures for the American S&P 500 (-0.01%), Dow Jones 30 (-0.06%) and Nasdaq 100 (+0.10%) are mixed ahead of US trade balance data. “We look for a slightly smaller trade deficit than consensus in December, as the lagged impact from lower energy prices and further improvement in export activity temper the trade imbalance”, wrote TD Securities analysts.

Forex Flash: EUR/GBP eyes 1m target of 0.8700 – UBS

According to Research Analyst Gareth Berry at UBS, “Buried at the end of Thursday's policy statement was the news that the Bank of England will follow in the Fed's footsteps and engage in a reinvestment program of its own. The proceeds of maturing Gilts held in the Asset Purchase Facility will be used to fund fresh asset purchases, keeping Gilt holdings steady. As such, the balance sheet will not be allowed to contract gracefully of its own accord, and will be more or less frozen in time at an elevated level.”
Read more Previous

Wall Street turns its sights to Moody’s amidst S&P allegations

The US Justice Department’s decision to sue Standard & Poor’s has left investors pondering why Moody’s Investors Service and Fitch Ratings weren’t targeted for awarding the same top grades towards troubled mortgage bonds and other debt securities. “What purpose does it serve for the U.S. government to bring an action against S&P at this point in time? “At first glance, is this a bid for some sort of retribution for the company’s 2011 downgrade of the U.S.? Moody’s and Fitch assigned the same ratings to these transactions. Why aren’t they named as well?” wrote Bonnie Baha, the Head of Global developed credit at DoubleLine Capital LP, which oversees about $53 billion.
Read more Next
Start livechat