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Markets Update am

  • European markets flat
  • Germany hit by weak export demand
  • Pound falls further
  • Mining shares lead the way

 

The pound has recovered some of its early falls against the dollar( up to $1.43890). It is now down 0.58% to $1.44, but has lost more ground against the euro and is 0.56% lower at €1.2674.

pound dollar

The falls appear to have been sparked by the latest opinion polls on the chances of Brexit, which suggest growing support for the UK to leave the EU.

In ASIA Nikkei hits 4-week low as U.S. jobs shock sends yen higher,after Friday’s disappointing U.S. jobs data, adding pressure on the outlook for Japanese exporters.

The Nikkei dropped 0.4 percent to 16,580.03 points, after falling to as low as 16,322.64, the weakest since May 10.

The broader Topix lost 0.4 percent to 1,332.43 and the JPX-Nikkei Index 400 shed 0.4 percent to 12,005.62.

Australia’s S&P/ASX 200 rose 0.8 per cent as gold miners strengthened after the bullion — which is sensitive to dollar moves and US interest rate expectations — surged 2.8 per cent jump on Friday. The yellow metal is now 0.2 per cent softer at $1,242 an ounce.

Hong Kong’s Hang Seng rose 0.4 per cent, despite mainland China’s Shanghai Composite slipping 0.15 per cent.

European stocks steadied on Monday after falling at the end of last week in the wake of weak U.S. jobs data, as gains in the shares of major mining and oil companies propped up the region’s markets.

The pan-European STOXX 600 and FTSEurofirst 300 equity indexes were both flat, having fallen around 1 percent on Friday.

Last Friday’s weak U.S jobs data hit the U.S. dollar, but this in turn gave a lift to the commodity sector, since a weaker dollar makes commodities priced in that currency more affordable for consumers paying with other currencies.

Mining stocks such as Anglo American, Rio Tinto and BHP Billiton rose more than 5 percent as the price of copper climbed to its highest level in around 4 weeks.

German industrial orders dropped more than expected in April due to weaker foreign demand for goods, according to official data.

Contracts for “Made in Germany” goods fell 2% month on month, Germany’s statistics agency the Economy Ministry said, marking the biggest monthly fall in nine months. 

The 10-year Treasury yield, which just five days ago brushed 1.90 per cent, is up 1bp on the session to 1.71 per cent, while equivalent maturity Bunds are easing 1bp to 0.07 per cent following news of a fall in German factory orders

The new session sees S&P 500 futures suggesting the Wall Street barometer will open up 0.2 per cent at 2,103, just 28 points shy of its record closing high.

The pan-European Stoxx 600 is adding 0.1 per cent, reflecting Wall Street’s late recovery, and with London-based commodity shares supported by rising base metals and Brent crude gaining 0.7 per cent to $49.98 a barrel.

 

 

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