- Spanish HICP m/m: -0.3% as expected, -1.0% previous
- Spanish HICP y/y: 3.0% vs. 3.2% expected, 2.9% previous
- Euro Zone consumer sentiment: unchanged at -6.2 as expected
- Euro Zone industrial sentiment: 1.3 vs. steady at 1.0 expected, 0.8 previous
- Economic confidence in the Euro Zone: 108.0 vs. 108.1 expected, 107.9 previous
Europe is starting the new trading week with some rather subdued and choppy price action. The euro and the Aussie did have some decent moves, though, with the euro advancing against its peers while the Aussie retreated.
Oil rises, other commodities tumble – Commodities were mixed but mostly down during the morning London session. Oil benchmarks were clearly well supported, however.
Precious metals were down, despite the returning risk-off vibes.
- Gold was down by 0.15% to $1,256.35 per troy ounce
- Silver was down by 0.04% to $18.398 per troy ounce
Based metals were mixed, but were mostly down.
- Copper was down by 0.19% to $2.691 per pound
- Zinc was down by 0.68% to $2,813.50 per dry metric ton
Oil benchmarks, however, were quite noticeable in positive territory.
- U.S. crude oil was down by 0.85% to $54.45 per barrel
- Brent crude oil was down by 1.08% to $56.92 per barrel
Market analysts couldn’t really pinpoint the overall lack demand for commodities. And we can’t really point to the Greenback since the U.S. dollar index was slightly down by 0.04% to 101.08 for the day when the session ended.
But with regard to the rise in oil prices, market analysts attributed that to heavy speculation by large players that oil prices will rise. Although news from earlier that Russia may pick up the pace in its oil cuts also likely gave oil a boost.
Risk appetite returns, then fades – European equity indices started the week on a good footing. However, they began slipping as the trading session progressed.
- The pan-European FTSEurofirst 300 was down by 0.25% to 1,454.94
- The blue chip Euro Stoxx 50 was down by 0.06% to 3,305.50
- Germany’s DAX was still by 0.04% to 11,809.00, but off the day’s high of 11,861.00
U.S. equity futures were also feeling the bearish sentiment.
- S&P 500 futures were down by 0.06% to 2,363.50
- Nasdaq futures were down by 0.16% to 5,334.62
Market analysts say that the returning risk off vibes was due to negative developments for Italian and British insurers, which were able to drown out the risk-on vibes from positive earnings reports for some European companies.
Marine Le Pen loses more ground – According to opinionway’s latest poll, the anti-EU Front National’s Marine Le Pen is still expected to win the first round of the French presidential elections. Moreover, Le Pen is also still expected to lose to Emmanuel Macron. However, Le Pen lost even more ground to Macron, with poll results coming in at 62-38 in favor of Macron. It was 61-39 last Friday.
Major Market Movers:
AUD – There were no apparent catalysts for the Aussie slide during the session. However, the commodities tumble and returning risk aversion were the likely culprits for the higher-yielding Aussie’s weakness during the session.
AUD/USD was down by 18 pips (-0.24%) to 0.7672, AUD/CHF was down by 12 pips (-0.16%) to 0.7731, AUD/NZD was down by 13 pips (-0.13%) to 1.0658
EUR – The euro was broadly higher against its peers during the morning London session. Aside from relief that Marine Le Pen lost ground to Macron, the risk-off vibes during the session also possibly gave the lower-yielding euro a lift.
EUR/JPY was up by 19 pips (+0.09%) to 118.81, EUR/NZD was up by 19 pips (+0.13%) to 1.4700, EUR/AUD was up by 34 pips (+0.25%) to 1.3790
- 1:30 pm GMT: Headline (1.7% expected, -0.5% previous) and core (0.5% expected, same as previous) U.S. durable goods orders
- 3:00 pm GMT: U.S. pending home sales (1.0% expected, 1.6% previous)
- 4:00 pm GMT: Dallas Fed President Robert Kaplan has a speech
- 9:45 pm GMT: New Zealand’s trade balance (-$3M expected, -$41M previous)
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical weeks!