ETX Capital Daily Market Bite, 11th March, 2013: Soft Markets; Italian Concerns And China Data Weigh
March 11, 2013 10:59 am
March 11th, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
Soft session for European financial markets with data indicating a slowdown in China last month overshadowed Friday’s solid US jobs report. Additionally, Fitch cut Italy’s credit rating by one-notch to triple-B plus, pressuring Italian bond yields and weighing on the euro. Italy’s 4Q GDP was also dismal with the economy contracting 0.9% – one of the deepest recessions in Europe. The data adds to the malaise in Italy at the moment with markets increasingly uncertain over the fact that the country is still ungovernable and could be for some time being, deepening the recession further in the quarters ahead. Italian banks are bearing the brunt of the Fitch downgrade and poor GDP data — the FTSE MIB is also registering some of the biggest losses in the broader European market. Traders now look to the end of the week when Italian politicians and the President will meet to discuss how to govern the country. Chinese inflation rose last month while industrial production and retail sales slowed — both falling short of expectations. That said, some attribute the slowdown last month to the disruption caused by the Chinese Lunar New Year holiday. Elsewhere in Europe, French industrial production slumped while German exports recorded their largest annual increase since October. Looking ahead, we have no major data from the US and markets on Wall Street are set to pause for breath after last week’s stunning rally which saw the DJIA register fresh all-time highs while the S&P500 is 0.9% away from its all time record high. DJIA futures are currently down 11 points and S&P500 futures are off 2.3 points.
March 11th, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
Soft session for European financial markets with data indicating a slowdown in China last month overshadowed Friday’s solid US jobs report. Additionally, Fitch cut Italy’s credit rating by one-notch to triple-B plus, pressuring Italian bond yields and weighing on the euro. Italy’s 4Q GDP was also dismal with the economy contracting 0.9% – one of the deepest recessions in Europe. The data adds to the malaise in Italy at the moment with markets increasingly uncertain over the fact that the country is still ungovernable and could be for some time being, deepening the recession further in the quarters ahead. Italian banks are bearing the brunt of the Fitch downgrade and poor GDP data — the FTSE MIB is also registering some of the biggest losses in the broader European market. Traders now look to the end of the week when Italian politicians and the President will meet to discuss how to govern the country. Chinese inflation rose last month while industrial production and retail sales slowed — both falling short of expectations. That said, some attribute the slowdown last month to the disruption caused by the Chinese Lunar New Year holiday. Elsewhere in Europe, French industrial production slumped while German exports recorded their largest annual increase since October. Looking ahead, we have no major data from the US and markets on Wall Street are set to pause for breath after last week’s stunning rally which saw the DJIA register fresh all-time highs while the S&P500 is 0.9% away from its all time record high. DJIA futures are currently down 11 points and S&P500 futures are off 2.3 points.
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