OVERNIGHT MARKET UPDATE:
· US – Consumer confidence fell
to 92.2 in February, a sharp decline from January's (downwardly revised) 97.8.
The decline in the Conference Board's measure of consumer sentiment was most
notable in those under 35 years old, and in household income groups under
USD50k.
· US – Existing home sales saw a
modest increase in the month of January, with sales climbing to their highest
rate in six months. The existing home sales rose 0.4% on monthly basis to a
seasonally adjusted annual rate of 5.47 million in January from a downwardly
revised 5.45 million in December.
· US – Home prices in major US
metropolitan areas increased in line with market expectations in the month of
December. The S&P/Case-Shiller 20-City Composite Home Price Index rose by a
seasonally adjusted 0.8% in December after climbing by 1.0% in November.
· Euro area – The German IFO
business sentiment took a bigger than expected tumble in February, easing to
105.7 from 107.3 in January. The expectations series drove the entire decline,
with the current assessment 0.4 points higher at 112.9 in February.
· Currencies – GBP was weighed
down by the BoE. EUR/USD continues to test support, as does the USD/JPY.
· Equities – Softness in Asia,
weak US data and falling oil prices resulted in European equity markets closing
around 1.5%, while the major US bourses were down 1.0-1.3%.
· Rates – US Treasury yields
closed lower amid weaker oil prices and soft US dataflow. European sovereign
bond yields were mixed.
· Energy – Crude oil prices fell
sharply on signs of OPEC non-cooperation. The Iranian oil minister stated the
agreement by Saudi Arabia and Russia for an oil production freeze was
ridiculous. The lack of geopolitical cooperation will keep OPEC production
high.
· Precious Metals – Gold prices
gained on the back of heightened risk aversion. High-cost gold miners are
taking advantage of the price spike to lock in profit margins, with a number of
companies having hedged production.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.