European stocks rebounded on Tuesday supported by a rally in mining and telecoms stocks. The euro hit the lowest against the dollar in a month, trading at $1.0746 late Tuesday in New York compared with $1.0826 late Monday as lower-than-expected 0.2% euro-zone inflation in December gave rise to expectations of more stimulus measures by the European Central Bank. The Stoxx Europe 600 index ended 0.6% higher in a choppy session. Germany’s DAX 30 rose 0.3% to 10,310.10 after the biggest daily slide in four months on Monday, and France’s CAC 40 lost 0.3%. Volkswagen sank 4% on news the US Justice Department filed a lawsuit against the German car maker for up to $90 billion, alleging it installed illegal emissions defeat devices in nearly 600,000 diesel-engine vehicles. Today from 09:45 – 10:00 CET final readings for December Services and Composite PMIs for France, Germany and euro-zone will be released. The tentative outlook is neutral. At 10:30 CET December Services PMI will be published in UK. The tentative outlook is positive. And at 11:00 CET November Producer Price Index will be released in euro-zone. The tentative outlook is negative.
Nikkei fell 1% today as yen strengthened against the dollar on increased safe-haven demand after the release of weak Services Purchasing Managers’ Index data in China reinforced concerns that China’s economy is slowing down. The Caixin Services PMI fell to 50.2 in December from 51.2 in November, showing a deceleration in China's services sector growth, which fell to its slowest rate in 17 months.
Oil futures prices are extending losses today after closing lower on Tuesday despite concerns about possible supply disruptions due to rising tensions between Saudi Arabia and lran over the Saudi execution of a Shi'ite cleric. Both February WTI and Brent crude prices fell 2.2% settling at $35.97 and $36.42 a barrel respectively on the New York Mercantile Exchange and London’s ICE Futures exchange. Today at 16:30 CET US Crude Oil Inventories will be released by Energy Information Administration. Analysts’ estimates point to a likely rise in crude oil stockpiles.
This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.