The European stock market was in decline on Monday as the markets played out the effect of the rate cut in China. EUR/USD pair was nearly flat at 1.1018 adding 0.1%. FTSE Eurofirst 300 dropped 0.41%, CAC 40 fell 0.2%. Meanwhile, the better-than-expected IFO business climate survey came out in Germany supporting the national market and the confidence in the European locomotive economy. This resulted in DAX 30 index rising 0.1% yesterday. It lost 12% since April due to the Volkswagen scandal and China’s slowdown and analysts believe it is being oversold now and has potential of further growth. Trade volumes on the EU exchanges were modest being a quarter lower than the 90-day average volume for the FTSEurofirst. Peugeot stocks slid 3.6% down despite its positive earnings report as markets reacted on a sharp decline in the carmaker’s sales in Asia. Philips stocks were in red losing 0.4% as the U.S. opposed the sale of its subsidiary Lumileds producing light bulbs. On Monday British pound pulled back from its 12-day low against the dollar as the latter weakened on weak US statistics. Today at 10:30 CET the UK GDP for the 3rd quarter will be released, the tentative outlook is neutral.
Nikkei index climbed 0.7% on Monday while USD/JPY dipped 0.4% to 120.98 yen. In China stocks were nearly flat on expectations policymakers in major economies will not tighten their monetary policy. The Shanghai Composite Index edged 0.5% up.
On Monday Brent crude oil price fell 0.63% to $47.24 a barrel while Light Sweet crude fell 1.18% to $43.46 due to the data on the U.S. commercial crude stocks have been increasing for a 5th consecutive week fuelling glut worries.
Gold futures decreased 0.1% to 1165.8 a troy ounce.
Copper added 0.81% on COMEX exchange. Last week aluminum slid down to hit a fresh 6-year low of $1479 a tonne and continued to extend losses yesterday. The metal prices are depressed due to its excessive production in rivalrous China and the US.
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.
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