Comment: Markets Start Week on a Positive Note, Euro Up Against USD
July 14, 2014 9:04 am
European stock markets are in the black Monday, following the positive lead of Asian stocks overnight as investors attempt to look past last week’s alarming noises out of the Portuguese banking system.
Market participants are generally upbeat ahead of a busy week of US corporate earnings and economic data out of China and the US. The Stoxx Europe 600 Index added 0.4% while the FTSE100 Index in London added 0.5%. Overnight in Asia, Japan’s Nikkei 225 jumped 0.9% to end a five-day slide as the yen slipped 0.2% to 101.47 per US dollar with focus on the upcoming policy meeting by the Bank of Japan.
In China, the Shanghai Composite Index climbed 1% while the Hang Seng Index increased 0.5%.China will report second-quarter economic-growth figures this week, which are expected to show an expansion of 7.4% in the three months to June 30 from a year earlier, according to Bloomberg. Elsewhere in Asia, Indonesia’s rupiah fell 0.6% to 11,658 versus the US dollar after Bank Indonesia said the current-account deficit probably widened to a near-record amount last quarter.
Meanwhile, the US dollar is steady while the Euro is up against the dollar at $1.3624 as traders seem to be putting worries about the Portuguese bank episode behind them. At the same time, markets are awaiting European Central Bank President Mario Draghi speech to lawmakers in Strasbourg where he may outline further cheap funding for the region’s lenders.
Over in the UK, Sterling is a touch firmer at $1.7125, holding near a 5-year high ahead of testimony before a UK parliamentary committee on Tuesday by Bank of England governor Mark Carney. Traders will be looking for more concrete statements on monetary policies by the Bank rather than recent mixed messages which have caused confusion. Similarly, in the US investors are waiting to hear Federal Reserve Chair Janet Yellen’s testimony to Congress, which starts on Tuesday.
In commodity markets, gold retreated 1.5% to $1,318.58 an ounce while Brent crude was little changed at $106.53 a barrel after sinking 3.6% last week on easing supply disruption fears. Companies releasing their earnings figures today include American Airlines, Hertz and Citigroup.
European stock markets are in the black Monday, following the positive lead of Asian stocks overnight as investors attempt to look past last week’s alarming noises out of the Portuguese banking system.
Market participants are generally upbeat ahead of a busy week of US corporate earnings and economic data out of China and the US. The Stoxx Europe 600 Index added 0.4% while the FTSE100 Index in London added 0.5%. Overnight in Asia, Japan’s Nikkei 225 jumped 0.9% to end a five-day slide as the yen slipped 0.2% to 101.47 per US dollar with focus on the upcoming policy meeting by the Bank of Japan.
In China, the Shanghai Composite Index climbed 1% while the Hang Seng Index increased 0.5%.China will report second-quarter economic-growth figures this week, which are expected to show an expansion of 7.4% in the three months to June 30 from a year earlier, according to Bloomberg. Elsewhere in Asia, Indonesia’s rupiah fell 0.6% to 11,658 versus the US dollar after Bank Indonesia said the current-account deficit probably widened to a near-record amount last quarter.
Meanwhile, the US dollar is steady while the Euro is up against the dollar at $1.3624 as traders seem to be putting worries about the Portuguese bank episode behind them. At the same time, markets are awaiting European Central Bank President Mario Draghi speech to lawmakers in Strasbourg where he may outline further cheap funding for the region’s lenders.
Over in the UK, Sterling is a touch firmer at $1.7125, holding near a 5-year high ahead of testimony before a UK parliamentary committee on Tuesday by Bank of England governor Mark Carney. Traders will be looking for more concrete statements on monetary policies by the Bank rather than recent mixed messages which have caused confusion. Similarly, in the US investors are waiting to hear Federal Reserve Chair Janet Yellen’s testimony to Congress, which starts on Tuesday.
In commodity markets, gold retreated 1.5% to $1,318.58 an ounce while Brent crude was little changed at $106.53 a barrel after sinking 3.6% last week on easing supply disruption fears. Companies releasing their earnings figures today include American Airlines, Hertz and Citigroup.
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