ETX Capital Daily Market Bite, 10th April, 2013: European Markets Broadly Higher On Data; Fed Eyed
April 10, 2013 10:45 am
April 10th 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
European share markets are broadly higher, helped by a surprise jump in French industrial production data, helping the euro reach a fresh one-month high versus the dollar. A strong finish in Asian markets overnight also provides support for European indices as investors welcomed news that China posted a $880 million trade deficit for March, contrary to expectations of a $14.7 billion surplus. Spanish and Italian industrial output numbers were weak but the French number was stronger, coming in at + 0.7% in February from the previous month, compared with expectations of an increase of just 0.4%. Italy has a decent debt auction, pushing yields lower on the 10-year. Despite the political gridlock in the country, it’s encouraging to see that investors still have appetite for peripheral paper. Looking ahead, the focus will now be on the Fed meeting minutes, due out after the European closing bell. Attention will be on if the Fed will deviate from its current easing policy, perhaps tempering or halting QE. However, last week’s poor US jobs report indicates the need for continuous easing measures, combined with the fact that sequester cuts are kicking in as reflected in recent economic indicators. On Wall Street, investors will also be gearing up for the upcoming earnings season which kicked off unofficially on Monday with Alcoa’s strong figures. DJIA futures are currently 38 points higher while S&P500 futures are higher by 2 points.
April 10th 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
European share markets are broadly higher, helped by a surprise jump in French industrial production data, helping the euro reach a fresh one-month high versus the dollar. A strong finish in Asian markets overnight also provides support for European indices as investors welcomed news that China posted a $880 million trade deficit for March, contrary to expectations of a $14.7 billion surplus. Spanish and Italian industrial output numbers were weak but the French number was stronger, coming in at + 0.7% in February from the previous month, compared with expectations of an increase of just 0.4%. Italy has a decent debt auction, pushing yields lower on the 10-year. Despite the political gridlock in the country, it’s encouraging to see that investors still have appetite for peripheral paper. Looking ahead, the focus will now be on the Fed meeting minutes, due out after the European closing bell. Attention will be on if the Fed will deviate from its current easing policy, perhaps tempering or halting QE. However, last week’s poor US jobs report indicates the need for continuous easing measures, combined with the fact that sequester cuts are kicking in as reflected in recent economic indicators. On Wall Street, investors will also be gearing up for the upcoming earnings season which kicked off unofficially on Monday with Alcoa’s strong figures. DJIA futures are currently 38 points higher while S&P500 futures are higher by 2 points.
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