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

Free $30 Earn Trade-able Trading Credit Bonus – Forex Time

Free $30 Earn Trade-able Trading Credit Bonus – Forex Time(0)

Switch to ForexTime and Free $30 Earn Trade-able Trading Credit Bonus. Join the hundreds of thousands of traders around the world who have already chosen ForexTime as a broker and Free Earn $30 Trade-able Trading Credit Bonus as a thank you for switching. Link:  Receive $30 Tradeable Credit Bonus Link:  Loyalty Cashback Promotions Link:  FX

$100 Risk Free Money on your Live Account – FidelisCM

$100 Risk Free Money on your Live Account – FidelisCM(0)

Get $100 Free Risk Forex Money on your Live Account There is no better way to trust more. Sign up for $100  No Deposit Bonus from FidelisCM Live Account and start forex trading now. Link: $100 Free No Deposit Forex Bonus Link: 200% Margin Bonus on all Deposit Available to: New and Existing clients Ending

$14000 New Accounts Bonus on Initial Deposits – AvaTrade

$14000 New Accounts Bonus on Initial Deposits – AvaTrade(0)

Up to $14000 New Accounts Bonus on your Initial Deposits to all new trading account. Open a new live trading account and verify it Make a deposit of no less than $100 and request the New Accounts Bonus. Link:  100% Bonus to Your First Deposit Link:  30% Sign-up Bonus on your Deposit Link:  Up to

Up to 200% Withdrawable Cashback Bonus – Forex Time

Up to 200% Withdrawable Cashback Bonus – Forex Time(0)

Always aims for profitable promotions for FXTM Customer, this time they have come up with a 200% Cashback Rebate Bonus promo which enables traders to earn up to 10,000 USD withdraw able Cashback bonus. Link:  Receive $30 Tradeable Credit Bonus Link:  FX Circuits Live Trading Contest Link:  Demo Forex Trading Contest Link:  Loyalty Cashback Promotions

$2500 Forex No Deposit Free Startup Bonus – InstaForex

$2500 Forex No Deposit Free Startup Bonus – InstaForex(0)

$2500 Free No Deposit Forex Bonus to Start Risk Forex Trading on InstaForex.com‎. With $2500 Free Forex Bonus you will be able to estimate our unsurpassed quality of order execution in live trading conditions with no risk and personal investments. Link:  Up to $5000 No Deposit Free Bonus Link:  $500 Forex No Deposit Free Bonus

100% Special Bonus Offer on a Deposit – World Forex

100% Special Bonus Offer on a Deposit – World Forex(0)

Get a 100% Special Bonus Offer on a Deposit plus for replenishment account And a free VPS server for every account replenishment in the amount of 100 USD. Link:  $10 No Deposit Forex Special Bonus Link:  Deposit $5 Receive $20 Special Bonus Link:  100% Forex Special Deposit Bonus Available to: All new trading account Ending

50 USD Forex No Deposit Bitcoin Bonus offer – UFX

50 USD Forex No Deposit Bitcoin Bonus offer – UFX(0)

$50 Forex No Deposit Bonus on their real account. This initial $50 Forex No Deposit Bonus offer is intended to allow new users of the platform the opportunity to test the real trading account. Link:  $50 No Deposit Bonus Promotion Link:  $50 Free No Deposit Bitcoin Bonus Link:  100% Real Money CashBack Promotion Available to:

Deposit $5 Receive $20 Forex Special Bonus – WForex

Deposit $5 Receive $20 Forex Special Bonus – WForex(0)

$10 Forex No Deposit Free Bonus or Deposit $5 Receive $20 Special Bonus Forex to all World Forex New Clients only. Trade with World Forex Broker Get 20$ or 10$ on your choice Link:  $10 Forex No Deposit Free Bonus Link:  Deposit $5 Receive $20 Special Bonus Available to: All new trading account Ending Date:

25 USD Receive Forex Cash Bonus for Free – Xtrade

25 USD Receive Forex Cash Bonus for Free – Xtrade(0)

$25 Receive Forex Cash Bonus for Free No deposit required to all Xtrade New Clients only and 60% Forex Deposit Bonus on your first time deposit to all new live trading account Link:  Up to $5000 No Deposit Free Bonus Link:  $500 Forex No Deposit Free Bonus Link:  $1000 Forex No Deposit Free Bonus Link: 

50% Deposit Bonus for Every Deposit – Fort Financial

50% Deposit Bonus for Every Deposit – Fort Financial(0)

Up to 50% Deposit Bonus for Every Deposit. Open and fund an account at FortFS.com and receive an exclusive 50% bonus on top of your initial investment up to $1000. Link: Up to 50% Bonus of Every Deposit Link: $5 Forex No Deposit Welcome Bonus Link: 15% Support Margin Bonus Available to: New and Existing

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