Action Insight · Asia Pacific · China · Commodities · Currencies · Econochat · Economic Outlook · Europe · Eurozone · Fixed Income · Global Economy · Inflation · Markets Commentary · North America · OIL · Turkey · Uncategorized

Markets Update am, Jan 11

 

 

  • European Stocks drop
  • Markets turn to Trump for clarity
  • China hints to growth as Iron ore leads commodities surge
  • Turkish Lira rout deepens
  • Asian markets end in positive

 

The rising uncertainty and growing unease ahead of Wednesday news conference by newly elected President Trump has left the markets high on alert.

European equities declined before President-elect Donald Trump’s first press conference since July. Surging raw-materials stocks sent Asian stocks higher. Turkey’s lira hit a new low ahead of the latest data on its current-account deficit.

“European stocks and US index futures are lacking momentum, while government bond yields see minimal moves, as traders appear wary of making bold bets ahead of a press conference later in the day from US president-elect Donald Trump” says the FT

Although Asian shares were mostly positive on Wednesday, there ia a risk of European markets falling victim of risk aversion amid the perceived anxiety.

Wall Street may turn to Trump for further clarity on how the planned fiscal  policy could boost investments and estimulate US economic growth.

With Donal Trump already labelled as a renowed market shaker investors should be prepared to expect the unexpected.

Financial markets are cautious as the euphoria over Trump’s perceived pro-growth policies fades as he prepares to face the media. Chinese data showing producer prices increased at the fastest clip in five years helped Asian metals and mining shares extend advances as it signaled the world’s second-largest economy is set to export inflation around the world via its supply chains.

Raw-materials shares in Asia rose toward a one-month high on Tuesday´s Chinese producer-prices data

Markets wrap up:

Stocks

  • The Stoxx Europe 600 Index lost 0.2 percent at 8:43 a.m. London time, while the FTSE 100 fell 0.1 percent.
  • The dollar-denominated MSCI Asia Pacific Index climbed 0.4 percent, with raw-material stocks up 1.9 percent and Japan’s Topix index rallying 0.5 percent.
  • Miners and technology shares led Australia’s S&P/ASX 200 Index up 0.2 percent and equities in New Zealand climbed for a third day.
  • The Shanghai Composite Index slid 0.8 percent. Hong Kong’s Hang Seng Composite Index rose 0.8 percent in a 10th day of gain, the longest winning run since 2012. The Hang Seng China Enterprises Index added 0.7 percent.
  • South Korea’s Kospi index gained 1.5 percent after Samsung Electronics Co. rallied 2.8 percent to a record.
  • India’s S&P BSE Sensex jumped to a two-month high, led by metal producers. Tata Steel was the top gainer on the gauge, rallying to more than a two-year high.
  • E-mini futures on the S&P 500 were down 0.1 percent. The S&P 500 closed unchanged at 2,268.90 Tuesday. The Dow Jones Industrial Average fell 0.2 percent to 19,855.53.

Commodities

  • West Texas Intermediate crude gained 0.3 percent to $50.98 a barrel after sliding almost 6 percent over the past two days. Analysts project U.S. oil stockpiles rose by 1.5 million barrels last week, muting optimism fueled by producers including Russia and Iraq saying they’re implementing last year’s accord to cut output.
  • Iron ore futures jumped 3 percent after a 5.5 percent rally on Tuesday. Copper was little changed following a 3 percent surge.
  • Gold for immediate delivery rose 0.2 percent at $1,190.61 an ounce, near the highest level since November.

Currencies

  • The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, was little changed.
  • The yen weakened 0.1 percent to 115.90 per dollar following a two-day advance of more than 1 percent.
  • Turkey’s lira lumped 1.5 percent, retreating for a fifth day as investors awaited signs the central bank will support the currency.

Bonds

  • Yields on Australian government bonds due in a decade rose by two basis points, or 0.02 percentage point, to 2.735 percent after shedding five basis points last session.
  • Similar maturity Treasuries were little changed at 2.38 percent.

bfmdfae

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s