|Day's Range||21,905.81 - 22,065.97|
|52 Week Range||21,202.20 - 23,890.20|
The WTI Oil price fell from $72.98 to $68.68 yesterday despite the inventories data showing a draw of -12.6M barrels which is the biggest since September 2016. Global stocks recover as investors continue to watch trade war developments.
Overall, it was a “cheerleading” speech with Draghi emphasizing the accomplishments of the ECB and the importance of the European Union unifying against the threat of increased protectionism in order to promote economic prosperity.
Some ECB members are said to be troubled about the slow pace of rates hikes, saying that a Sept/Oct 2019 hike is too late.
“It was ironic that Trump had been criticized by the “commentariat” on the details of trade tariffs, but that his wider aim to address global trade imbalances was being overlooked with too much focus on the headline-grabbing tariff threats and trade war fears.”
It’s a busy week ahead, with the markets looking ahead to ECB, FED and BoJ monetary policy, the North Korea – U.S Summit, key stats out of the UK, Europe and the U.S and then there’s the G7 Summit that concluded on the weekend.
The tension that’s been gathering in Italy finally erupted last week as coalition talks stalled and a snap election seemed increasingly likely. Investor confidence plummeted, not only in Italy but in the security of the eurozone and the wider economic community as fears intensified over the possibility of an Italian exit from the EU. Order was somewhat restored towards the end of the week when a statement was released late on Thursday that the coalition would be sworn into power the next day. FXTM Senior Writer Kirsty MacSween attempts to make sense of the chaos.
The political concerns in Italy are spreading across markets causing serious pressure on the banking sector. Global equities have lost about 1.5% in the past 24 hours and risk aversion has continued in early Wednesday trading.
Italy’s two biggest antiestablishment parties — the 5 Star Movement and the League — are again in talks to form a coalition government after an earlier agreement was effectively unwound by Italy’s president this week, according to reports on Wednesday. Party officials are working on coming up with a new candidate to serve as economy minister, Reuters reported, citing an unnamed 5 Star source who also said the two parties are considering expanding its coalition to include the Brothers of Italy, a right-wing party.
Italian stocks and bonds sold off on Tuesday as fears mounted that the country will need to hold a fresh general election over the summer as a last-ditch effort to form a government crumbled on Monday. Italy has suffered two months of political gridlock after the early March election produced an inconclusive result, leading to a hung parliament and throwing the country into disarray. President Sergio Mattarella on Monday unsuccessfully concluded a fifth round of formal coalition talks with the political parties, urging them to back a caretaker government.
The U.S White House has caused an early spark in the Crude Oil market and buyers have put the commodity above 70.00 Dollars. China and the U.S have extended their trade negotiations. Asian markets have been mixed this morning. Inflation data from the U.S will be a key this week.
The U.K and U.S will be open for trading as many nations celebrate Labor Day. Wall Street was cautious on Monday and the U.S Dollar remains very strong.
The broad markets remain in a cautious mode. Asian equities were lower, European equities have been tentative even as the Pound and Euro trade at lower values against the U.S Dollar. US Futures looking for direction before the opening.
Asian equities have started the week cautiously and Europe has been tentative early. The U.S Dollar remains strong in the short term.
A fresh fear is lurking on global financial markets – and it is not about trade wars, affirms a leading analyst at one of the world’s largest independent financial advisory organizations.
Global equities have turned cautious in Europe before the U.S Federal Reserve’s FOMC Statement and Press Conference.
Wall Street is expected to open with gain. Retail Sales numbers will come from the States today, but it is next Wednesday’s Fed policy meeting which will remain a focal point for an investor.
The Italian general election on Sunday 4th March will be another closely watched vote, with voters continuing to shift allegiances from the Establishment to the populist parties that have seen increased popularity in recent years.
There were no major surprises from the Federal Reserve’s FOMC Meeting Minutes publication yesterday, but it did highlight the U.S Central Banks ambition to raise interest rates in 2018.
European equities have stumbled as the U.S Dollar has become weaker. Japanese equities traded lower this morning, but the Shanghai Shenzhen and Hang Seng were positive. Core Consumer Price Index data will come from the States tomorrow, along with Retail Sales.
European stocks are mixed on Thursday as the dollar gives back some of its recent gains. Oil prices continued to move higher, following Wednesday’s report from the Department of Energy which showed a larger than expected draw. The German institute predicts increasing growth for 2017 and 2018, while German inflation was mixed. European Confidence is … Continue reading The Dollar Retreats as European Sentiment Increases
Yahoo Finance’s Seana Smith, Dion Rabouin, Rick Newman and Myles Udland on why Italy’s political crisis is spooking the global markets and whether it’s a threat to Europe’s currency.