Comment: Markets Edge Up Despite Ukraine Tensions; Commodities Rebound
March 11, 2014 7:20 am
Upbeat price-action in Asian markets kicked up European stocks early Tuesday although persisting worries over the situation in the Ukraine continue to curb enthusiasm to build risk. US markets pared session losses Monday, gearing up Asian markets for a better session – Asian share markets were punished on Monday so a rebound was somewhat expected. The mystery surrounding the missing Malaysia Airlines jet dominates headlines across the world but particularly in Asia as authorities in Malaysia and China [the destination of the missing flight] step up the search for the jet.
The mood is better on the whole – Asia’s descent on Monday did not turn into a global rout but investor sentiment in the region remains fickle still. BOJ overnight stood firm on no changes to policies following Monday’s damper GDP figures out of Japan in Q4. China’s ugly export data rattled confidence however overnight, the Shanghai Composite booked a mild gain with banks moving up as the country’s total credit growth slowed last month after regulators warned that too much growth could hurt the health of China’s financial system.
In Europe this morning, of course Ukraine remains the dominating story with growing worries a solution to end the crisis will be hard found after US Secretary of State John Kerry rejected an offer of talks with Russian President Putin, until Moscow plays ball with the US to reduce the tensions in the Ukraine. Crimea, the region in dispute by Russia and Ukraine, saw Russian forces expand their presence over the weekend, worrying the West after last week, Crimea’s parliament voted to hold a referendum to join Russia – this referendum is to be held on Sunday and it’s outcome could be the trigger of a new wave of heated tensions between the West/Ukraine and Russia as the West and Ukraine will claim the vote is illegal.
Outside of Ukraine, Europe’s macro agenda sees UK industrial and manufacturing output followed by US wholesale inventories. The data menu is on the light side – Tuesday’s session is certainly calmer than Monday’s flush of activity which saw the commodities market register deep declines. Tuesday’s a better day across all assets, particularly commodities as gold, base metals and oil all book gains, lifting European mining and resource players as well as oil and gas stocks.
Upbeat price-action in Asian markets kicked up European stocks early Tuesday although persisting worries over the situation in the Ukraine continue to curb enthusiasm to build risk. US markets pared session losses Monday, gearing up Asian markets for a better session – Asian share markets were punished on Monday so a rebound was somewhat expected. The mystery surrounding the missing Malaysia Airlines jet dominates headlines across the world but particularly in Asia as authorities in Malaysia and China [the destination of the missing flight] step up the search for the jet.
The mood is better on the whole – Asia’s descent on Monday did not turn into a global rout but investor sentiment in the region remains fickle still. BOJ overnight stood firm on no changes to policies following Monday’s damper GDP figures out of Japan in Q4. China’s ugly export data rattled confidence however overnight, the Shanghai Composite booked a mild gain with banks moving up as the country’s total credit growth slowed last month after regulators warned that too much growth could hurt the health of China’s financial system.
In Europe this morning, of course Ukraine remains the dominating story with growing worries a solution to end the crisis will be hard found after US Secretary of State John Kerry rejected an offer of talks with Russian President Putin, until Moscow plays ball with the US to reduce the tensions in the Ukraine. Crimea, the region in dispute by Russia and Ukraine, saw Russian forces expand their presence over the weekend, worrying the West after last week, Crimea’s parliament voted to hold a referendum to join Russia – this referendum is to be held on Sunday and it’s outcome could be the trigger of a new wave of heated tensions between the West/Ukraine and Russia as the West and Ukraine will claim the vote is illegal.
Outside of Ukraine, Europe’s macro agenda sees UK industrial and manufacturing output followed by US wholesale inventories. The data menu is on the light side – Tuesday’s session is certainly calmer than Monday’s flush of activity which saw the commodities market register deep declines. Tuesday’s a better day across all assets, particularly commodities as gold, base metals and oil all book gains, lifting European mining and resource players as well as oil and gas stocks.
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