_XtraSmall.jpg){kind=small}
Jens Peter Sørensen
Danske Bank A/S
Market movers today
-
German and Spanish inflation releases – inflation is expected to rise as base effects are fading. In addition, we have a couple of ECB speeches but we do not expect new info to the markets.
-
In the US, we have a number of Fed speeches including one from Yellen. Most of the speakers are fairly neutral, so we do not expect much new information from the speeches.
Selected market news
Yesterday, OPEC agreed to a preliminary deal that will cut production for the first time in eight years. Oil prices gained more than 6% on the back of the agreement, which will reduce production to a range of 32.5-33m barrels per day from 33.2mb/d currently. Many of the details still need to be clarified and the targets countries will get has yet to be agreed on.
The rally in the oil price was supportive for the US stock market, while US Treasury yields rose. The rally in the stock market was driven by energy producers and S&P ended up at 0.5%.
The Asian equity markets have followed the positive trend from the US this morning as the markets have risen across the region on the back of the OPEC deal and higher oil prices. Oilrelated currencies such as the Norwegian krone and the Malaysian ringgit have strengthened, while the yen has weakened modestly against the other major currencies.
Retail sales in Japan for August published this morning fell for the first time in three months and show the challenges for the Japanese economy, even though sales were affected by bad weather and fewer weekends. On Friday, a string of data on the Japanese economy is due to be released such as household spending, employment, inflation and industrial production, which will give a fuller picture on the recent performance of the Japanese economy.
This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector.
This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange.
Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.