ETX Capital Daily Market Bite, 24th April, 2013: Markets Higher Despite Poor German Data
April 24, 2013 10:45 am
April 24th 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
Strong gains overnight in US and Asian markets together with mounting speculation over an ECB rate cut next week provide support to European markets this morning. However, traders are cautious ahead of German IFO survey due soon which is expected to show weakness in line with the recent ZEW and poor PMIs from the euro zone yesterday. This has placed pressure on the euro which is hovering around the 1.30 level. Further weakness in euro zone data is likely to lift expectations of a rate cut from the ECB next week. Traders are as such hesitant to build exposure in case of a disappointment by ECB chief Mario Draghi next week. An upbeat tone out of the periphery is supporting the risk environment with Spanish and Italian bond yields trading lows for the year. Italy’s President is expected to announce his PM today, paving the way for meaningful progress in governing the country after weeks of political uncertainty there. There’s not much out on the economic plate other than the IFO survey while in the US, we have durable goods orders. Apple’s earnings met expectations last night but the sales forecast for the second quarter was below expectations. That said the company is looking to return around an extra $55billion in cash to shareholders as part of an expansion of the capital programme it unveiled a year ago.
April 24th 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
Strong gains overnight in US and Asian markets together with mounting speculation over an ECB rate cut next week provide support to European markets this morning. However, traders are cautious ahead of German IFO survey due soon which is expected to show weakness in line with the recent ZEW and poor PMIs from the euro zone yesterday. This has placed pressure on the euro which is hovering around the 1.30 level. Further weakness in euro zone data is likely to lift expectations of a rate cut from the ECB next week. Traders are as such hesitant to build exposure in case of a disappointment by ECB chief Mario Draghi next week. An upbeat tone out of the periphery is supporting the risk environment with Spanish and Italian bond yields trading lows for the year. Italy’s President is expected to announce his PM today, paving the way for meaningful progress in governing the country after weeks of political uncertainty there. There’s not much out on the economic plate other than the IFO survey while in the US, we have durable goods orders. Apple’s earnings met expectations last night but the sales forecast for the second quarter was below expectations. That said the company is looking to return around an extra $55billion in cash to shareholders as part of an expansion of the capital programme it unveiled a year ago.
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