Richard Perry
Independent Analyst
It almost seems as though there is a different driving factor for the markets every day at the moment, and yesterday was the turn of China. So what will it be today then? Well, the standoff with Greece and the Eurozone is gradually coming to a head as we approach the Eurogroup meeting on 24th April which could be critical as to whether Greece receives the €7.4bn tranche of bailout. This issue will grab the headlines in the coming days and could easily impact on sentiment.
Wall Street jumped higher yesterday as markets reacted to the easing measures put in place by the People’s Bank of China. The S&P 500 rallied by 0.9% as Morgan Stanley became the latest bank to beat estimates. Asian markets have been a touch more positive today, with the Nikkei 225 rallying 1% as the yen has begun to weaken again. European markets are a little more reticent today, with a mixed showing in early trading with Greece giving cause for concern.
In forex trading, after battling back yesterday, the US dollar has continued its recovery and is trading positively against all forex majors. The prices of gold and silver are also weaker as a result of the rebound on the dollar. Euro traders will be able to turn their focus to Germany this morning which could lend some support, as the ZEW Economic Sentiment due at 1000BST. The expectation is for further recovery to 55.3 (from 54.8 last month) which would be a sixth consecutive month of improvement and be further signs of better news in Europe’s driving economy.
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