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Markets Update , Feb 14

 

 

  • Dollar slumps on Trumps cabinet
  • Europe ends 5-day rally;
  • Japan shares fall as yen strengthens
  • Fed´s Yellen testimony looms

 

 

Stocks flat and the dollar down on Tuesday as caution set in before testimony from Federal Reserve chief Janet Yellen that may offer some clues on timing the next interest reate rise in the U.S.

Equities from Japan to London slid and the dollar dropped after Donald Trump’s national security adviser resigned on concerns over the White House national security adviser’s Russian contacts.

Stocks in Europe ended a 5 day wining streak, the yen strengthened and the Japan´s Topix Index slipped. Toshiba Corp. tumbled, while shares in Hong Kong swung as investors weighed data on China’s producer prices.

asia-stck-14

 

Asia Stocks fall as the U.S. new FX  policy approach will result in sanctions for countries in the region.

 

Inflation data from China failed to lift stocks in Shanghai and Hong Kong. China’s factory gate prices increased the most since 2011 last month, while consumer prices rose 2.5 percent. That spurred concerns over monetary policy, as the People’s Bank of China has been tightening the screws on corporate leverage.

china-inflation-cpi2x

Consumer prices in China rose 2.5 percent year-on-year in January of 2017, compared to a 2.1 percent rise in December while markets expected a 2.4 percent gain. It was the highest inflation rate since May 2014, driven by a faster increase in cost of food and non-food.

 

UK inflation rises to 1.8% Breaking! Britain’s inflation rate has jumped to 1.8% in January, up from 1.6% in December. the Consumer Prices Index in now closer to the Bank of England’s 2% target, and suggests that the weak pound is continuing to drive up the cost of living.

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Today in the markets:

Investors will turn their attention to Federal Reserve Chair Janet Yellen’s testimony in Congress on Tuesday in Washington. Traders are pricing in a 30 percent chance the Fed lifts rates at its March 15 meeting, little changed from the probability seen at the start of this year.

Markets standings on Tuesday:

Currencies

The Bloomberg Dollar Index fell 0.2 percent at 8:07 a.m. in London, after a 0.2 percent gain on Monday and last week’s 0.7 percent advance. The euro gained 0.1 percent to $1.0612.
The yen added 0.2 percent to 113.55 per dollar, after falling 0.5 percent on Monday. The Korean won jumped 1.3 percent, near the highest level since November.
The Australian dollar strengthened 0.5 percent. Business conditions jumped to the highest level in more than nine years and the employment gauge surged, diminishing the likelihood of interest-rate cuts in the near term.
Stocks

The MSCI All-Country index was flat at 440.97, near its all-time high of 442.70 reached in May 2015. The measure advanced over the previous four days.
The Stoxx Europe 600 Index slipped 0.1 percent, after a five-day rally that brought it to the highest level in more than a year. The FTSE 100 Index lost 0.3 percent.
Japan’s Topix slipped 1 percent. Toshiba tumbled 9.2 percent after delaying a scheduled earnings announcement meant to show how much of a loss the company was facing from its nuclear-equipment operations.
Singapore’s Straits Times Index headed for the biggest decline since October, falling 1.3 percent.
Hong Kong’s Hang Seng and the Shanghai Composite Index were flat, after four days of gains.
Contracts on the S&P 500 fell 0.1 percent, after the benchmark index closed up 0.5 percent at a record 2,328.25 on Monday. The Russell 2000 Index and Nasdaq also rose to all-time highs, as did Apple Inc. shares.
Bonds

The yield on 10-year Treasury notes was little changed at 2.44 percent, after climbing three basis points in the previous session.
Yields on Australian bonds advanced three basis points to 2.74 percent.
Commodities

Oil futures were little changed at $52.90 in New York, after snapping a three-day rally on Monday. Investors are weighing rising U.S. crude stockpiles against output cuts from OPEC and other producing nations.
Gold was 0.2 percent higher at $1,227.87, following a 0.7 percent drop in the previous session.
Copper extended a rally, climbing 0.2 percent to the highest since May 2015 in London, after the world’s two biggest mines halted some operations.

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