European stocks have a bad day


This afternoon’s session has seen further selling hitting stock markets and commodities as the euphoria of the past month appears to be on the wane. The FTSE 100 was the biggest loser as far as indices are concerned, dragged down no doubt by Rolls-Royce that dropped 19% after issuing a profit warning . 

There been a fairly full economic calendar as far as speakers go, with no fewer than 5 members of the Fed hitting the wires. They were largely uneventful as far as market moving events go. The latest EIA inventory report from the US showed a large build in Crude stockpiles  adding further pressure on a market that already has bears firmly in control.
Overnight strong Australian employment data  buoyed the Australian currency whilst a Draghi speech this morning where he reiterated his dovish stance caused some short-lived selling in the EUR/USD.

The FTSE 100 (-1.88%) dropped over 100 points today to end the European session at 6178. The Eurostoxx 50 (-1.76%) and Dax (-1.15%) were also down as equity markets are seemingly taking a pause from their recent surge higher, having there biggest drop in 6 weeks. All three US indices are currently in the red with the DJIA (-0.93%) suffering the sharpest decline.

In a recurring theme of late, the biggest movers in commodities were once again WTI (-2.14%) and Brent (-2.58%) with this afternoon’s build in inventories unlikely to offer some support anytime soon. The fundamentals have not been supportive of a bullish scenario of late, and that trend seems set to continue . WTI lost 92 cents to end the European session at $42.01 per barrel. 

The biggest gainer in the currency space amongst G10 markets was the Australian dollar, enjoying gains against all its major crosses. The AUD/USD (+0.74%) moved up 52 ticks to trade at 0.7114 at the time of writing. EUR/USD (+0.23%) saw small gains and maybe seeing a weakening in it’s selling pressure of late .

There’s relatively little out overnight as far as economic releases or central bank speeches is concerned, with the German Preliminary GDP q/q the next event of interest at 07:00 GMT tomorrow morning. It’s a busy end to the week for the US with core retail sales m/m, PPI m/m and University of Michigan Consumer Sentiment all set to be released tomorrow afternoon.