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.
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