European Opening Session – 14/03/2017 – by Arjun Lakhanpal

March 14, 2017 by

In Asian Equity Markets stocks were mixed on Tuesday with data out of China supporting Shanghai and Tokyo lower after more troubles with Toshiba. In Japan, the fell 0.15 percent as Toshiba plunged 6.1 percent after the company announced it would postpone earnings filings again due to the need for more time with auditors to review its U.S. nuclear subsidiary Westinghouse. Australia’s S&P/ASX 200 rose 0.08 percent with its energy sub-index up 1.21 percent. China’s Shanghai composite added 0.11 percent after Goldman Sachs upgraded China’s stocks to “overweight” on Monday, saying that the increasing producer price index will translate to better corporate revenues and easing credit stress in the short-term.

In Currency Markets the dollar inched up against a basket of currencies on Tuesday as U.S. Treasury yields extended their rise ahead of an expected interest rate rise by the Federal Reserve.  The U.S. currency was steady at 114.850 yen, having gone to 115.510 on Friday, its highest since Jan. 19. The euro was effectively flat at $1.0651. The pound had gained 0.4 percent overnight after Scotland’s First Minister Nicola Sturgeon demanded a fresh Scottish independence referendum but said it should take place at the earliest in late 2018. The Australian dollar was down 0.15 percent at $0.7561, giving back some of the previous day’s gains made when the dollar stumbled against the euro.

In Commodities Markets crude oil prices hovered near three-month lows on Tuesday in Asian trading, with investors waiting for key reports and data that may shed light on a supply overhang in the global market. U.S. West Texas Intermediate crude was up 3 cents at $48.43 a barrel. Brent crude futures gained 7 cents to $51.42 a barrel, having settled down 2 cents on Monday after falling as low as $50.85. Spot gold was mostly unchanged at $1,203.16 per ounce. In other precious metals, silver was flat at $16.94 per ounce. Platinum and palladium were also mostly unchanged at $936.20 per ounce and $750.80 respectively.

In US Equity Markets  stocks ended little changed in light volume on Monday, with traders eyeing a Fed meeting expected to result in an interest rate increase later this week. The S&P 500 gained 0.04 percent, to 2,373.47 and the Nasdaq Composite added 0.24 percent, to 5,875.78. After the bell, U.S.-traded shares of Valeant Pharmaceuticals lost 9.3 percent after investor William Ackman, who had been its biggest cheerleader for two years as the share price climbed and then plummeted, on Monday said his hedge fund had sold its entire position. Shares of Mobileye  jumped nearly 30 percent to a high of $61.51 after chipmaker Intel agreed to buy the driverless technology maker for $15.3 billion. Mobileye closed up 28.2 percent.

In Bond Markets U.S. Treasury yields edged higher on Monday in anticipation of a Federal Reserve interest rate increase on Wednesday, nervousness that the central bank could indicate a more aggressive pace of future rate hikes, and new corporate bond supply. Prices for benchmark 10-year Treasuries were last down 2/32 to yield 2.589 percent, from a yield of 2.582 percent late on Friday. Two-year yields, which are considered the most vulnerable to Fed policy, were last at 1.364 percent. That was up slightly from 1.359 percent late on Friday.