European stocks closed lower in a choppy session on Wednesday after oil prices turned lower. The euro strengthened against the dollar for the third day in a row hitting one-month high at $1.1044. Remarks of Ewald Nowotny, a member of the European Central Bank’s governing council, supported the euro sentiment as they suggested that more easing by ECB is unlikely. The STOXX 600 Europe ended 0.4% lower, Germany’s DAX 30 fell 0.8% to 10,592.49. German exports in October fell 1.2% on month due to lower demand from its export markets, particularly China and Russia. But total German exports were 3.3% higher year-over-year helped by strong European orders. Today at 10:30 CET October Trade Balance will be released in UK. At 13:00 CET Bank of England will announce interest rate decision and the minutes of interest rate meeting will published. The bank is expected to leave the interest rate unchanged at 0.5%. At 12:30 CET ECB's Coeure speaks in Brussels. And at 19:00 CET Deutsche Bundesbank President and ECB Governing Council voting member Weidmann will speak at a conference in Lisbon.
Nikkei fell 1.3% today to five-week low at 19,046.55 as yen recorded its biggest gain against the dollar in more than three months on Wednesday, hitting a one-month high of 121.075 to dollar. Exporter shares such as Fanuc and Honda Motor were hit, though trading volume was low with turnover at the Tokyo Stock Exchange's main board at 2.19 trillion yen, about 14 percent below its average over the past year.
New Zealand dollar gained more than one percent today after the Reserve Bank of New Zealand cut interest rates but said further easing should not be needed.
Oil prices are edging higher today after closing lower on Wednesday despite the official report US crude stocks dropped by bigger-than-expected 3.6 million barrels. Investors focused on 5 million barrels jump in distillate stockpiles, including heating oil, as outlook for oil market remained bearish given persistent global supply glut.
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