Lars Christensen
Danske Bank A/S
Market movers today
Focus will continue to be on the geopolitical developments in Ukraine. In addition, the Q1 reporting season speeds up with among others Intel, Yahoo, Coca Cola and Johnson & Johnson scheduled to release Q1 earnings today.
In the data calendar focus will continue to be on the strength of the weather-related rebound. Here the most interesting piece of information is the NAHB housing market index for April that will give us an idea of the strength of the US housing market. There was only a modest rebound in March to 47 and according to consensus it is expected to increase to 50 in April. However, the NAHB peaked at 57 in December, so a rebound in line with consensus will still suggest that there is more to the softer housing market than just bad weather.
In the US March consumer prices are due for release today and in Europe attention will be on ZEW economic sentiment in Germany and March consumer prices in the UK.
In the US we have speeches from several FOMC members including Fed chairwoman Jannet Yellen at 14:45 CET. Yellen’s speech is just a brief opening remark to a conference in Atlanta without a Q&A. Yellen will get a much better opportunity to communicate with financial markets in connection with her speech tomorrow for the Economic Club of New York.
Selected market news
Despite the continued tensions in eastern Ukraine the US stock markets rose on Monday after quite a bit of headwind last week. The rebound in US stocks yesterday should be seen in the light of stronger-than-expected retail sales data for March. This morning the Asian stock markets are mixed – Japanese stocks trading moderately higher and Chinese stocks trading a bit lower.
The markets are, however, not immune to the events in Ukraine and particularly the commodity markets have been affected. Oil prices continue to rise on the back of the increased geopolitical tensions and are close to the highest level in more than a month.
In the global currency markets the Russian rouble and the Ukrainian hryvnia continue to weaken, while the major currencies have been relatively steady overnight.
This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector.
This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange.
Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.
Recommended Content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.