Stocks across Europe continued Asia’s move higher, initiated by China’s renewed commitment to stimulus amid slowing growth momentum. Weak US manufacturing initially dampened enthusiasm for riskier assets, but investors quickly shrugged it off. Wall Street advanced with the Nasdaq jumping over 1%
Have the DUP set their price?
Both the pound and the FTSE were on the front foot, continuing to show an impressive level of strength at the end of a politically fraught week. Following a series of 3 votes on Brexit, the PM has won time to bring her Brexit deal back to the House of Commons for a third meaningful vote on Tuesday 20th.
The pound is finding support from rumours that the DUP could be about to get behind the Theresa May’s deal in exchange for another hefty sum. As Hammond is drafted in for negotiations, similarities can be drawn to when the DUP agreed to prop up the government for £1 billion, in 2017. Other Eurosceptic Conservatives ministers are also expected to draw behind the PM’s Brexit in fear of the UK never leaving the EU at all.
US manufacturing falls for 2nd straight month
Weaker US manufacturing data put a damper on an otherwise buoyant session. US industrial production rose 0.1% in February, lower than the 0.4% expected. This is just the latest piece of evidence that points to a sharp slow down of economic growth in the first quarter of this year. Retail sales, housing and manufacturing have all produced soft reports so far this year, supporting to the Fed decision to be patient with policy changes. The dollar swiftly declined following the release.
EUR/USD at 10 day high
EUR/USD surged to a 10 day high following the US manufacturing print. Eurozone inflation ticking higher to 1.5% had helped keep the euro steady across the morning before it seized on the weaker dollar, climbing to $1.1345.
Palladium at record high
The weaker dollar helped gold push back over $1300 after dipping 1% in the previous session. Palladium stole the show jumping to a record high of $1567.50. Speculation that Russia will ban the export of the palladium scrap has pushed buyers into panic mode. With the supply outlook tightening the bulls are firmly in control. These elevated levels could comfortably be maintained, with $1600 the next big level to watch for.
CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed