EU Opening

Written on
UCapital24 2022-05-20 07:50:56

Key Global Events
Positive opening in Europe, the Dax rose from 0.86%, the Ftse Mib by 0.70% and London by 1.31% in the wake of a particularly tonic Asian session after the People's Bank of China unexpectedly cut lower interest rates (from 4.6% to 4.45%) for loans of more than 5 years (to further support the real estate market).
Europe that is about to close a mixed week, Milan still slightly above par, while Paris in decline could recover only with an excellent session.
Yesterday in focus the single currency which after the minutes of the ECB has returned to appreciate particularly, momentarily at 1.0576 (-0.05%). Yesterday the cross reached the highest levels of the last two weeks after the high probability of the next rate hike at the July meeting emerged from the minutes (the market discounts a rise of 25 puti but according to many analysts the Board could bet on an increase of 50). Attention today to the consumer confidence of the eurozone and to the words of Philip Lane at 14:00).

On Wall Street yesterday another session in decline as today futures are preparing to rebound. Decline significantly more contained from the sell-off on Wednesday but which is still bringing the S&P500 benchmark index into bear territory. In fact, almost 20% reversed from the peak of January 3. The disappointing data didn't help yesterday.

Forex - retrace the dollar today after the weakness of the week. On the other hand, the single currency and the Japanese yen fell.
EURUSD at 1.0570 (-0.06%) GBPUSD at 1.2463 (+ 0.04%) and USDJPY at 127.98 (+ 0.15%).
The weakness on the dollar yesterday brought back purchases on gold. The safe haven asset par excellence, abandoned a bit during the last few weeks, returned to $ 1846 per ounce (+ 0.26%).
Remaining among the main commodities, oil fell at 108 dollars a barrel, and Brent at 111 $ (-0.59%).

Indices - Asia positive, while the American President Joe Biden has started his journey in the continent (today he will be in South Korea), the lists closed positively after the news arrived from the Chinese Central Bank. Hang Seng + 2.83% Shanghai + 1.60% and Tokyo's Nikkei gains 1.27%.

Positive futures on Wall Street (+ 1% the S&P500, the Dow Jones + 0.83% and the Nasdaq + 1.50%) after yesterday's closings (-0.58% Nasdaq -0.26% and Dow Jones -0.75%).

Key Macroeconomic Data

Positive opening in Europe, the Dax rose from 0.86%, the Ftse Mb by 0.70% and London by 1.31% in the wake of a particularly tonic Asian session after the People's Bank of China unexpectedly cut lower interest rates (from 4.6% to 4.45%) for loans of more than 5 years (to further support the real estate market).

UK - UK retail sales in April saw + 1.4% monthly but -4.9% over twelve months: the figures beat the consensus which estimated -0.2% and -7.2 % respectively.

EU - the producer price index rose above expectations in Germany. In April +33.55 (31.5% consensus) year over year and + 2.8% (1.4% consensus) month over month.