European Market Openings Delayed by Euronext Glitches, Iraq Situation Sees Brent Crude Prices Soar
June 12, 2014 7:06 am
European stock markets traded broadly flat to lower Thursday ahead of key economic data releases which are likely to offer some much needed direction. Major global stock markets fell from six-year highs in the previous session following a downbeat report on the global economy by the World Bank.
Earlier this morning, glitches at Euronext led the exchange operator to release a statement saying that it was experiencing a connectivity issue which delayed the opening of major European markets by half an hour.
The Stoxx 600 rallied earlier this week to the highest level since January 2008, but Thursday’s session is seeing the index trading lower. By contrast, US equity futures are trading up a little higher following downside pressure in the previous session. Across other asset classes, FX markets were mostly steady, except the NZ dollar which has extended its session gain to 1.1% after the Reserve Bank of New Zealand hiked interest rates for the third time this year.
Meanwhile, base metals are higher, as are gold prices, last seen up around a buck to $1,261 per ounce. In oil markets, worrying developments in Iraq, where a jihadist insurgency threatening further destabilisation of the region has pushed up the price of Brent crude by 64 cents to $110.59 a barrel as rising worries about oil supply rattle market sentiment.
On Wednesday, US stocks fell the most in three weeks along with European equities on the back of the World Bank’s downgrade of global economic growth. The Standard & Poor’s 500 Index declined 0.4%. Overnight, Asian equity markets declined, following the lead of US and European markets which fell from record highs overnight. The MSCI Asia Pacific index dropped 0.7%, on track for its first fall in six sessions after finishing Wednesday at its highest peak since June 2008. In Japan, the yen was stronger, weighing on the Nikkei 225 index, which was the greatest underperformer in the region. Data showed Japanese April machinery orders fell, but this was as expected due to April’s sales tax hike.
Looking ahead, we have euro zone industrial output data, but much of the focus will be on US economic reports lined up Thursday such as import prices, weekly jobless claims and of course retail sales and business inventories.
European stock markets traded broadly flat to lower Thursday ahead of key economic data releases which are likely to offer some much needed direction. Major global stock markets fell from six-year highs in the previous session following a downbeat report on the global economy by the World Bank.
Earlier this morning, glitches at Euronext led the exchange operator to release a statement saying that it was experiencing a connectivity issue which delayed the opening of major European markets by half an hour.
The Stoxx 600 rallied earlier this week to the highest level since January 2008, but Thursday’s session is seeing the index trading lower. By contrast, US equity futures are trading up a little higher following downside pressure in the previous session. Across other asset classes, FX markets were mostly steady, except the NZ dollar which has extended its session gain to 1.1% after the Reserve Bank of New Zealand hiked interest rates for the third time this year.
Meanwhile, base metals are higher, as are gold prices, last seen up around a buck to $1,261 per ounce. In oil markets, worrying developments in Iraq, where a jihadist insurgency threatening further destabilisation of the region has pushed up the price of Brent crude by 64 cents to $110.59 a barrel as rising worries about oil supply rattle market sentiment.
On Wednesday, US stocks fell the most in three weeks along with European equities on the back of the World Bank’s downgrade of global economic growth. The Standard & Poor’s 500 Index declined 0.4%. Overnight, Asian equity markets declined, following the lead of US and European markets which fell from record highs overnight. The MSCI Asia Pacific index dropped 0.7%, on track for its first fall in six sessions after finishing Wednesday at its highest peak since June 2008. In Japan, the yen was stronger, weighing on the Nikkei 225 index, which was the greatest underperformer in the region. Data showed Japanese April machinery orders fell, but this was as expected due to April’s sales tax hike.
Looking ahead, we have euro zone industrial output data, but much of the focus will be on US economic reports lined up Thursday such as import prices, weekly jobless claims and of course retail sales and business inventories.
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