European stocks were steady on Thursday having bounced off the 2-month low with retailers and technology firms being the bottom performers. The FTSEurofirst index fell 0.3 to 1,430 having lost already 6% since the start of the month after the too moderate easing from ECB. Glencore advanced 8% on the news the company is planning to cut its costs and debts. The France’s utility EDF advanced 6% on its upgraded forecast of the 2015 earnings. As for chemicals, Syngenta stocks rose 5% on the rumours it may merger with Dow Chemical and DuPont. Meanwhile, chipmaker Ams AG tumbled more than 20% on the news it lost some business Apple Corp. No important macroeconomic data is expected today in EU.
Japanese Nikkei rose 0.97% to 19230.48 snapping a three-day losing streak on overnight Wall Street gains and cheaper yen. The index lost 1.4% in a week due to the falling energy shares amid slumping oil prices. The USD JPY pair increased 0.4% to 122.06 a yen. In China, the Shanghai index lost 0.7%. Experts believe the US interest rate hike will provoke the money outflow from the Asian markets.
Oil is extending losses hitting and hovering near sever-year lows on concerns about the global supply glut and weak demand. The data on the reduced US stockpiles failed to support the commodities markets. Brent crude oil prices fell 1.5% to $39.52 a barrel while WTI fell 1.1% to $36.76.
Spot gold prices slid 0.14% to $1,071.30 an ounce and continue looking down as US dollar gains ground ahead of the Fed meeting next week. As investors widely believe in interest the looming interest rates hike, the gold edges lower being the non-interest-paying asset. Moreover, slumping oil triggers some fear of deflation which is a bearish factor for gold often used to hedge against inflation. Silver lost 0.3% to $14.10 an ounce while platinum lost 0.1% to $855.95 an ounce.
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 holds positive ground above 1.0700, eyes on German CPI data
EUR/USD trades on a stronger note around 1.0710 during the early Monday. The weaker US Dollar below the 106.00 mark provides some support to the major pair. All eyes will be on the Federal Reserve monetary policy meeting on Wednesday, with no change in rate expected.
USD/JPY recovers 156.00 after testing 155.50 on likely Japanese intervention
USD/JPY has recovered some ground above 156.00 after crashing to 155.00 on what seemed like a Japanese FX intervention. The Yen tumbled in early trades amid news that Japan's PM lost 3 key seats in the by-election. Holiday-thinned trading exaggerates the USD/JPY price action.
Gold tests critical daily support line, will it defend?
Gold price is seeing a negative start to a new week on Monday, having booked a weekly loss. Gold price bears the brunt of resurgent US Dollar (USD) demand and a risk-on market mood amid Japanese holiday-thinned market conditions.
XRP plunges to $0.50, wipes out recent gains as Ripple community debates ETHgate impact
Ripple loses all gains from the past seven days, trading at $0.50 early on Monday. XRP holders have their eyes peeled for the Securities and Exchange Commission filing of opposition brief to Ripple’s motion to strike expert testimony.
Week ahead: FOMC and jobs data in sight
May kicks off with the Federal Open Market Committee meeting and will be one to watch, scheduled to make the airwaves on Wednesday. It’s pretty much a sealed deal for a no-change decision at this week’s meeting.