IFC Markets - Analytics

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    Mixed data in global markets

    US stocks edged up on rebounding energy, healthcare and technologies sectors as oil recorded 2% gains. Dow Jones index added 1.41% while Nasdaq Composite surged 1.97%. S&P500 jumped 1.67% on Thursday driven up by energy stocks ( 4.59%). All its ten sectors were in the black. The broad market index posted its biggest daily percentage gain in a month. Exxon Mobil shares gained 4.6%, Chevron shares gained 5.1%. J.P. Morgan Chase stocks advanced 1.5% on the upbeat earnings report driving financials up. US Dollar index, a measure of the greenback’s value against a basket of six major currencies, added 0.2%. The US currency gained ground on rebounding oil prices and advancing stock market.

    Today at 14:30 CET the November advance retail sales are expected in the US, the tentative outlook is negative. At 15:00 CET the Fed’s William Dudley will speak on the economy in New Jersey. At 16:00 CET the University of Michigan confidence index for December will be released, the outlook is neutral.

    European stocks slumped to a 13-month low on Thursday. Automobile sector dragged the markets lower as French carmaker Renault lost 10.3% on fraud investigations. After Volkswagen case, many carmakers are checked for correct emissions tests but no other defeat devices have been found so far. FTSEurofirst 300 index slid 1.5% to 1,334.36. UK’s FTSE index lost 1.5% as well. Today European stocks are set to fall further driven by oil. EURUSD pair lost 0.12% to 1.0892. No important economic data are expected today in Eurozone.

    The new loan data were released today in China showing the monthly lending volume was well below the previous month’s reading and investors’ expectations. Chinese stocks were 2% up on Thursday but today slumped more than 3% on the loan data with CSI 300 index down 1.5% by lunch break. The energy and resources sectors were the bottom performers.

    Nikkei fell 0.5% today to 17,147 having lost already 3.1% this week. The Japanese markets fell as oil prices declined and the Bank of Japan chief stated he was not planning further monetary easing in the near future. USD JPY strengthened 0.31% to 118.06.

    Crude oil was looking down on Friday in Asian trade. WTI is traded at $30.35 a barrel having hit a 12-year low slightly below $30 a barrel this week. WTI has already lost 21% since the first trading day of this year on January 4. The same fate has befallen Brent crude which is traded at $30.36 a barrel and has broken down through the level of $30 this week as well. Since the start of the year Brent crude has already lost 22%. Recently Iran has been doing its utmost to fulfill the conditions of the nuclear agreement signed last July with the world six major powers. The sanctions imposed on Iran shall be lifted soon which makes analysts and traders especially concerned with the likely inflow of Iranian oil which will add to the global oil glut and may put further pressure on tumbling oil.

    Gold is advancing today on falling Asian markets. Spot gold is 0.6% up at $1,083.76 while gold futures are 1% up at $1,083.9. Although tumbling oil and Asian stocks sell-off support demand for gold as a safe asset, further interest rates hike by the US Fed caps the gold.

    London copper reached its floor since 2009 at $4,329.50 a tonne on Thursday but later rebounded 0.6%. Today in the morning the three-month copper fell 0.3% to $4,379 a tonne. Since the start of the year copper has already lost around 7%.

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