X-Trade Brokers - Analytics

    X-Trade Brokers

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    Risk-off flows drive markets lower

    Risk-assets are trading sharpy lower today and barring a strong reversal into the US close it looks like an ugly end to the week for stock markets The Dax (-2.47%) has plummeted in today’s trade and now trades back at 9850 after shedding over 200points on the day. There’s red across the board as far as equites are concerned with any bright spots few and far between. US stocks are performing relatively better, but less than half way through their cash session the markets are under pressure with the US500 (-1.10%) down to 2090. 

    Crude benchmarks are substantially lower too with Brent Oil (-1.62%) trading back at $51 close to the European close. As is typical with moves lower in risk-assets Gold ( 0.49%) has continued to build on recent gains and is poised to end the week on its highs, currently trading $1275/oz. The main economic release of the session came from Canada with a marked improvement in the labour market shown by rising employment change and falling unemployment. This caused a sharp initial drop int he USDCAD, but the move was pared by and large over the course of a few hours

    Moves in the FX space have been slightly smaller in scale than those seen in other asset classes with the pound one of the biggest movers. The GBPUSD (-079%) and EURGBP ( 0.63%) both reflect the weakness in sterling, and as you can determine from this the EURUSD (-0.22%) is little changed. The USDJPY (-0.04%) is also pretty much flat at 106.91 ahead of a major week for the pair with both central banks meeting.

    As well as the FOMC and BOJ meetings next week there’s several other major economic releases. UK CPI and the Bank of England meeting top the bill for UK focused traders, whilst the US retail sales will be important for the US dollar after the recent weak NFP print. 

     

    Any person acting on this information does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.


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