ETX Capital Daily Market Bite, 14th February, 2013: European Markets Mixed; Eyes On G-20 Meeting
February 14, 2013 11:50 am
February 14th, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
Regional share markets are broadly flat again Thursday morning, with poor German, French and Italian 4Q GDP data curbing enthusiasm for gains. A strong session in Asian markets overnight offers a degree of support to prices with Japan’s national index rebounding 0.5% as the BOJ sits on its hands and maintains policies. The BOJ offered a more optimistic outlook for the Japanese economy, boosting sentiment. In Europe so far, both German and French economies suffered bigger than expected 4Q falls in GDP of 0.6% and 0.3% respectively. Italy meanwhile printed a massive 0.9% contraction in 4Q, adding further concerns about the state of the euro zone periphery. The euro is trading firmly below the 1.34 mark against the dollar while core government bonds such as bunds are just about in the black. Euro zone 4Q GDP as a whole is out soon and is expected to show a 0.5% contraction for the period overall. Meanwhile, traders are gearing up to hear from G20 leaders in Moscow with the topic of “currency wars” set to be the summit. So far, G7 leaders have pledged to avoid currency devaluation, leaving it up to the market to decide the exchange rate. But with Japan keen on spurring economic stimulus measures, which will prompt further yen weakness, traders are worried that G20 leaders will be divided over the issue which may lead some central banks to interfere with FX rates in order to stem the rising price of their domestic exports. Looking ahead, we have US weekly jobless claims which should continue to show stabilization in the labour market. US stock futures are currently flat to slightly lower with the DJIA off 10 points and S&P500 lower by nearly 2 points.
February 14th, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
Regional share markets are broadly flat again Thursday morning, with poor German, French and Italian 4Q GDP data curbing enthusiasm for gains. A strong session in Asian markets overnight offers a degree of support to prices with Japan’s national index rebounding 0.5% as the BOJ sits on its hands and maintains policies. The BOJ offered a more optimistic outlook for the Japanese economy, boosting sentiment. In Europe so far, both German and French economies suffered bigger than expected 4Q falls in GDP of 0.6% and 0.3% respectively. Italy meanwhile printed a massive 0.9% contraction in 4Q, adding further concerns about the state of the euro zone periphery. The euro is trading firmly below the 1.34 mark against the dollar while core government bonds such as bunds are just about in the black. Euro zone 4Q GDP as a whole is out soon and is expected to show a 0.5% contraction for the period overall. Meanwhile, traders are gearing up to hear from G20 leaders in Moscow with the topic of “currency wars” set to be the summit. So far, G7 leaders have pledged to avoid currency devaluation, leaving it up to the market to decide the exchange rate. But with Japan keen on spurring economic stimulus measures, which will prompt further yen weakness, traders are worried that G20 leaders will be divided over the issue which may lead some central banks to interfere with FX rates in order to stem the rising price of their domestic exports. Looking ahead, we have US weekly jobless claims which should continue to show stabilization in the labour market. US stock futures are currently flat to slightly lower with the DJIA off 10 points and S&P500 lower by nearly 2 points.
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