Subscribe to RSS

Market Overview  : Banking sector performance weighs on global markets

US stocks fell on Thursday due to the weak performance of the banking sector which may postpone the rates hike. The US dollar index which measures the greenback’s value against a basket of six major currencies rose 0.1% to $95.666 still on track to lose 1.4% this week (see live US dollar index data). The Janet Yellen’s testimony did not support the dollar. The Fed Chair mentioned that she expects the gradual interest rates hike this year but the Fed will act depending on the worsening global market conditions. The trading volume was high – 11.2bn compared to the 9.6bn average – as S&P 500 hit the lowest in 2 years but later pared half of the losses on the news from OPEC that it was going to cooperate for oil production cuts. The index ended 1.23% lower at 1829.08 with all of its 10 sectors closing in the red and financials leading the decline (-2.68%). The financial sector hit a fresh low since October 2013 with Bank of America down 6.8% and J.P.Morgan down 4.4%. Market participants are worried the global recession may be looming. The Dow Jones Industrial Average lost 1.6% while Nasdaq 100 composite lost 0.39%.

European stocks were on the decline on Thursday due to the weak banking sector performance. EURUSD rate hit almost 4-month high of $ 1.1377 on Thursday. European banks tumbled 6.3% which raises concerns that funding conditions may worsen for some companies. The banking sector suffered on concerns that low interest rates make it barely profitable. Societe Generale fell 7.1% after its quarterly earnings fell short of expectations as the bank set aside 400mln euros on litigation. Rio Tinto posted an annual loss which pushed the miner’s shares 3.4% lower. On Friday European shares edged up paring yesterday’s losses. FTSEurofirst index rose 1.4% after the 3.7% loss on Thursday. Banking sector is in the black today with Commerzbank stocks rising 12% on positive Q4 earnings data.

Asian stocks were declining for a sixth session in a row on Friday dragged lower by weak data from European banks, concerns over the China’s slowdown and falling oil prices. Japan’s Nikkei index slumped 5.4% to a 15-month trough recording a weekly loss of 11.1%. Toyota Motor Corp and Honda Motor Co lost 6.8% and 5.5% respectively. Analysts at Nomura Securities calculated that “when dollar falls by 1 yen, it cuts Japan’s pretax earnings by 0.4-0.5% and pushes the Nikkei share average down by 400 points”. The yen continued strengthening with the USD JPY having hit 110.985 on Thursday. Japan’s markets were closed for a holiday on Thursday when US dollar sharply fell against the yen. The Japanese currency has already become almost 10% stronger since the Bank of Japan introduced negative interest rates and may strengthen further, according to experts.

Gold spot prices surged 4.1% to $1262.90 showing the record daily gain since September 2013 as investors rushed to safe-haven assets (gold, yen, government bonds) amid the slowdown of the world economy. This week spot gold prices have already advanced 5.5% while gold futures added almost 7%. The assets in the world’s major ETF SPDR Gold Trust increased 2% on Thursday.

WTI oil futures today edged up 4.7% to $ 27.44 a barrel on the news OPEC was considering oil production cuts, Brent oil prices are rising 6%. Nevertheless, both Brent and WTI are still to suffer 7% and 11% weekly losses respectively. According to the United Arab Emirates Oil Minister, cheap oil already forces its producers to limit oil output which will finally make the market rebalance.

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

123% Tradable Deposit Bonus Promotion – FreshForex

123% Tradable Deposit Bonus Promotion – FreshForex(0)

Get 123% Tradable Deposit Bonus Promotion gives a real chance to start Forex trading with low investment and double return. Start efficient Forex trading with Tradable Bonus 123% Campaign. Link:  123% Tradable Deposit Bonus Promotion Link:  $5 Forex No Bonus Promotion Ending Date:  31 December 2017 Available to:   New Clients only Bonus Offer: Get 123%

500 Cent Forex No Deposit Welcome Bonus – FortFs

500 Cent Forex No Deposit Welcome Bonus – FortFs(0)

Get 500 Cent Forex No Deposit Welcome Bonus 2017-2018 to All New Traders. Open a forex real trading account, pass the personal data verification procedure and get the 500 Cent Free Forex Welcome Bonus! Link:  Up to 50% Bonus of Every Deposit Link:  500 Cent Forex No Deposit Bonus Link:  15% Support Margin Bonus Available

$10000 Monthly Challenge Live Trading Contest – FXCM

$10000 Monthly Challenge Live Trading Contest – FXCM(0)

$10,000 Monthly Challenge Live Trading Contest Compete to Win Cash Prizes. The Contest only available to FXCM Mini Account clients Join the monthly Live Trading Contest by opening an FXCM Mini Account with as little as $50. Link:  $10000 Monthly Challenge Contest Available to: All Mini Account clients Contest offer: $10,000 Monthly Challenge Live Trading

$1000 Free No Deposit Forex Bonus – Grand Capital

$1000 Free No Deposit Forex Bonus – Grand Capital(0)

Contests for Forex trader Main Prize $1000 Free No Deposit Forex Bonus. The Contests main prize is $1000 Free No Deposit Forex Bonus with fully withdraw able profit Link:  $1000 Free Bonus‎ Trader Contest Link:  $500 Forex No Deposit Welcome Bonus Link:  Up to 444% Profit Receive for a single trade Link:  40% Forex Deposit

Up to $5000 Trading Credits Bonus Promo – HYCM

Up to $5000 Trading Credits Bonus Promo – HYCM(0)

25% Forex Credit Bonus Promo available on your Deposits. Experience Some of HYCM New Features, Services and Offers Receive 25% Forex trading credit bonus Link:  25% Trading Bonus on your Deposits Ending Date:  31 December 2017 Available to:   New Clients only Bonus Offer: 25% Forex Trading Bonus Promo Available on your deposits to New Clients only.

$20 Forex No Deposit  Bonus Promo Action – NPBFX

$20 Forex No Deposit Bonus Promo Action – NPBFX(0)

$20 Free No Deposit Bonus Promo action. $20 Free No Deposit Bonus Client must submit application of requesting the accrual of bonus funds with indicating the number of trading account by email  info@npbfx.com. Link:  $20 Free Bonus Promo Action Ending Date:  1 March 2017 Available to:   New Clients only Bonus Offer: $20 Free No Deposit

300% Forex Tradable Bonus Promotion 2017 – MarketsYes

300% Forex Tradable Bonus Promotion 2017 – MarketsYes(0)

300% Forex Tradable Bonus Promotion All New and existing clients. MarketsYes is offering all prospective clients deposit for up to 3000 USD/EUR/GBP a 300% Tradable Bonus. Link:  300% Tradable Bonus Promotion Available to: All New and existing clients Ending Date: 31 December 2017 Bonus offer:  300% Tradable Bonus Promotion All New and existing clients. SETTLEMENT

FX Zones Forex Demo Trading Contests – Forex Time

FX Zones Forex Demo Trading Contests – Forex Time(0)

FX Zones Forex Demo Trading Contests 2017 Win up to a total of $12,000. ForexTime is doing something extra special with its trading contests this year, starting with FX Zones Forex Demo Trading Contest  2017 Link:  Demo Forex Trading Contest Link:  Loyalty Cashback Promotions Link:  200% Withdraw-able Cashback Rebates Available to:   New Clients only Contest

Get $88.8 Forex Free No Deposit Bonus – FBS Inc

Get $88.8 Forex Free No Deposit Bonus – FBS Inc(0)

Get $88.8 Forex Free No Deposit Bonus when you open your first FBS Real Account. The $88.8 Free Forex bonuses is credited automatically after account opening, upon verification of the clients phone number and e-mail. Link:  $123 Forex No Deposit Bonus Promotion Link:  $88.8 Lucky No Deposit Required Bonus (for Malaysian traders) Link:  100% Forex

100% Welcome Bonus to Your First Deposit – AvaTrade

100% Welcome Bonus to Your First Deposit – AvaTrade(0)

100% Special Welcome Bonus Offer to your first deposit Up to $300. Start trading today and in honor of our Irish roots we’ll give you a St. Patrick Day special Welcome bonus of up to 100% Link:  100% Special Bonus to Your First Deposit Available to: All new account Ending Date: 31 December 2017 Bonus

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories