The Eurozone core inflation fell short of expectations again in December, indicating that the low energy prices are affecting the goods & services prices fast. Both the euro and the British pound stood weak against the US dollar. The sterling hit a new nine-month low, reaching $1.46371, affected by the EU referendum despite Tuesday’s favorable Construction PMI data.
Japanese Index Nikkei is dropping for a third consecutive day on Wednesday, as experts still worry about the Chinese markets, reaching a low of 18145. The Australian Index (Sydney200) fell 68.50 AUD within the first couple of hours of trading today, also continuing its downfall affected by the China concerns. On the other hand the Japanese yen, being seen as a low risk currency, is holding its ground close to the 2.5- month high versus the US dollar and its nine-month top against the euro.
Oil prices finally moved slightly away from eleven year lows on Wednesday as the worries over the supply and the increasing stock levels overshadow the tensions in the Middle East. Crude oil was last up $0.18 from the previous session, while Brent oil was up $0.12. The Crude oil Inventories news are in focus later on Wednesday at 15:30GMT. In Wall Street news, Apple shares dropped 2.5% after it was reported that the company will cut down its production of iPhone’s latest models during the first quarter of 2016. Coming up today is the US Trade Balance at 13:30 GMT, followed by the ISM Non-Manufacturing PMI data at 15:00 GMT and closing the day with the FOMC Meeting Minutes at 19:00 GMT.