Marketsforu Evening Update

marketsforu

The major news this afternoon came after the much anticipated IPO of Ferrari on the NYSE (here). Shares opened up 17% higher after the IPO was oversubscribed and investors scrambled to buy the shares in the Italian car manufacturer. Strong gains were also seen by General Motors (+4.00%) and Boeing (+1.92%) after positive earnings releases for the latest quarter . This positive picture came against a mixed equity backdrop as shares were pretty mixed across the board as Europe rang it’s closing bell.

The German Dax closed at 10212 (+0.64%) and the Eurostoxx 50 finished up 8 ticks at up 0.26%. The FTSE (-0.22%) closed in the red as a fresh spate of selling from China on the Asian close  hit mining stocks that comprise a large weighting in the index. The UK based stock market was down almost 14 ticks to 6331.

In the commodity space, Oil (here) was still down on the day despite a positive reaction to the larger than expected DOE inventory releases (here). The longer term outlook for crude remains uncertain (here) but today WTI (-1.27%) ended the European session down $0.59 to $45.70 a barrel, with Brent (-0.43%) closing at $48.28. Gold (-1.04%) experienced another leg lower (here) trading $1165.20/OZ at the time of writing. 

As far as Forex is concerned, the US Dollar (-0.03%) was little changed against most it’s major crosses. The Greenback did enjoy nice gains against the Antipodean currencies, with both the AUD (-0.41%) and NZD (-0.15%) seeing some selling pressure against their US counterpart (here). The Buck also moved up against CAD as the BOC decided to keep rates on hold again (here). BOC Governor Poloz is currently conducting his press conference at the time of writing, but has thus far failed to make any market moving comments.

Looking forward the big event tomorrow is the highly anticipated conclusion of the ECB meeting. The rate decision will be released at 12:45 BST, with some expecting a cut of 10 BPS to the deposit rate. The QE programme, currently expected to account for 1.1 Trillion Euros of purchases until September 2016, is unlikely to be extended in Malta tomorrow however any mention of an increase in quantity or duration in the press conference (13:30 BST) by Mario Draghi will cause large market movements. UK retail sales come in at 09:30 BST and US Initial Jobless will show the latest employment situation for the USA at 13:30