European Open Market Briefing – 13/06/2017 – by Arjun Lakhanpal

June 13, 2017 by

In Asian Equity Markets Japan’s Nikkei index trimmed earlier modest losses and steadied on Tuesday, as the shock from a slide in U.S. technology shares began to ease. The Nikkei was a fraction lower, down 0.05 percent at 19,899.14. The broader Topix was up 0.2 percent at 1,595.10 and the JPX-Nikkei Index 400 added 0.2 percent to 14,201.85. MSCI’s broadest index of Asia-Pacific stocks outside Japan rose 0.4 percent, recouping about half of the previous session’s losses as regional tech shares regained their composure. Hong Kong’s Hang Seng gained 0.3 percent but Chinese stocks lost 0.3 percent. South Korea’s KOSPI gained 0.4 percent, with the biggest stock Samsung Electronics up 0.5 percent after Monday’s 1.6 percent decline.

In Currency Markets the Canadian dollar rose to its highest level in nearly two months on Tuesday, buoyed by hawkish comments from Canada’s central bank, while worries about UK political uncertainty dented sterling. At one point, the Canadian dollar was at its strongest since April 17, at C$1.3274 per U.S. dollar, extending gains after climbing more than 1 percent on Monday. The loonie last traded at C$1.3293, up around 0.2 percent on the day. The pound eased 0.1 percent to $1.2653, after shedding 2.3 percent the previous two trading days. Against the yen, the dollar held steady at 109.97. The euro eased 0.1 percent to $1.1193. The dollar index rose 0.06 percent to 97.21.

In Commodities Markets oil prices edged up early on Tuesday, lifted by statements that OPEC-leader Saudi Arabia was making significant supply cuts to customers, although rising U.S. output meant that markets remain well supplied. Brent crude futures were at $48.42 per barrel, up 0.3 percent, from their last close. U.S. West Texas Intermediate crude futures were at $46.21 per barrel, also up 0.3 percent. Spot gold was up 0.1 percent to $1,266 per ounce. Among other precious metals, palladium hovered near the 16-year highs hit on Friday, and was last seen up 0.1 percent at $896.50. Silver fell 0.3 percent to $16.87 an ounce. Platinum rose 0.3 percent to $942.74 per ounce.

In US Equity Markets  Apple shares added to last week’s decline on Monday to lead a market downturn as tech, still the best performing S&P 500 sector this year, succumbed under its own weight. The Dow Jones Industrial Average fell 0.17 percent, to 21,235.67, the S&P 500 lost 0.10 percent, to 2,429.39 and the Nasdaq Composite fell 0.52 percent, to 6,175.47. The S&P technology sector fell 0.8 percent after decreasing 2.7 percent Friday for its largest two-day decline in nearly a year. General Electric was the S&P’s biggest boost with a 3.6 percent advance to $28.94. Jeff Immelt will retire as chief executive and would be replaced by John Flannery, the head of GE healthcare, who said he will conduct a swift review of the business portfolio.

In Bond Markets U.S. Treasury yields rose on Monday after tepid demand at a 10-year Treasury auction offset strong demand at a three-year auction, while uncertainty about the Federal Reserve’s policy outlook on Wednesday limited the move higher in yields. Benchmark 10-year Treasuries were last down 3/32 in price to yield 2.211 percent, from a yield of 2.199 percent late on Friday. U.S. 30-year yields were last at 2.866 percent, compared to 2.853 percent late on Friday

Economic Calendar

  • 09:30 GMT+1 UK CPI y/y
  • 13:30 GMT+1 US PPI m/m