European stock indexes closed sharply lower on Tuesday dragged down by commodity and financial shares. The euro strengthened against the dollar trading at $1.0922 late Tuesday compared with $1.0924 Monday. The Stoxx Europe 600 index dropped 2.1%. Germany’s DAX 30 fell 1.8% to 9581.04, and France’s CAC 40 lost 2.2%. Markets shrugged off positive economic data indicating Germany’s unemployment rate slipped to 6.2% from 6.3% in December, the lowest since 1992. BP shares sank 8.7% after the company posted a $2.2 billion loss in the fourth quarter, though kept its quarterly dividend of 10 cents a share. Today from 09:45 - 9:55 CET January Services PMIs for Italy, France and Germany will be released. The tentative outlook is positive. At 10:00 CET January final Services PMI will be published in euro-zone. The tentative outlook is neutral. At 10:30 CET January Service PMI will be released in UK. The tentative outlook is positive.
Nikkei dropped 3.2% today as market sentiment was undermined by declining oil prices, and increased demand for heaven assets resulted in stronger yen. Investors sold off risky assets despite Bank of Japan Governor Kuroda’s remarks today that the central bank has “ample room” to expand the program of asset purchases from the current annual pace of 80 trillion yen.
Chinese stocks are falling today with the CSI300 index of 300 stocks on Shanghai or Shenzhen Stock Exchanges down 0.43%. Investors sold off equities notwithstanding new mortgage rules aimed at supporting property prices: China said it would reduce the minimum down payment required for first and second-time home buyers in most cities.
Oil futures prices are edging higher today after recording another sharp drop on Tuesday on fading hopes of cooperation between Russia and OPEC to cut output. March WTI fell 5.5% to $29.88 a barrel on the New York Mercantile Exchange following a 6% loss the previous day. US official Crude Oil Inventories will be released today at 16:30 CET by the Energy Information Administration. Traders anticipate a build-up in inventories as the report from American Petroleum Institute, an industry group, indicated US crude stocks rose by 3.8 million barrels to 500.4 million.
Gold prices stabilized today near a three-month high at $1,128.12 an ounce for spot gold. A weaker dollar and prospect of lower interest rates for longer period on the back of concerns for global economic slowdown support higher demand for the safe-haven metal.
Note
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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