Subscribe to RSS

Market Overview: Oil and China slowdown concerns drive markets

US stocks ended slightly higher on Tuesday amid continued decline in WTI. The dollar strengthened as investor confidence was bolstered after the 6.9% annual growth rate of China’s economy in 2015 came in line with expectations. According to live dollar index data the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rose 0.1% to 99.091. The S&P 500 closed less than 0.1% higher at 1881, with five of its ten main sectors finishing in positive territory led by utility and consumer staples stocks, up 1.5% and 1.2% respectively. Energy stocks closed down 2.2% with energy sector down more than 10. 7% since the beginning of the year. UnitedHealth Group gained 3%, after the health insurer’s quarterly earnings beat expectations. Bank of America shares fell 1.5% as fourth-quarter revenues missed expectations. Earnings of US corporations are expected to fall for the second quarter in a row, with aggregate earnings per share for the S&P 500 companies declining 5.99% year-on-year. The report of the National Association of Home Builders showed housing sector remains a bright spot of US economy: home builder sentiment index was steady in January and higher than the overall 2015 average. Market participants will be watching closely for the US inflation report due today at 14:30 CET. The headline inflation is forecast to edge up to 0.8% year-on-year in December from 0.5% in November. At the same time December Housing Starts and Building Permits will be published. Both are expected to fall.

European stocks posted the biggest gain in three weeks on Tuesday on expectations of more Chinese stimulus measures after China’s economy grew at the slowest pace in 25 years. The euro strengthened against the dollar as investors bought back the euros sold to fund purchases of high-yield currencies of emerging markets. The Stoxx Europe 600 index ended 1.3% higher, Germany’s DAX 30 rallied 1.5% to 9664.21, and France’s CAC 40 gained 2%. Mining shares advanced as China is a major buyer of commodities. BHP Billiton rallied 3%, Anglo American gained 2.6% and Sweden’s Boliden rose 1.1%. French oil company Total added 1.4% although the company announced it will likely report a 20% fall in 2015 earnings because of lower oil prices. Today at 10:30 CET December labor market data will be released in UK. The unemployment rate is expected to remain at 5.2% while average weekly earnings over a three-month period are expected to fall year-on-year to 2.1% from 2.4%.

Nikkei entered a bear market today after closing down 3.7% at 16,416.19, which is 20% below last year’s peak. Yen moved higher against the dollar with falling oil undermining market sentiment.

Asian markets are lower on negative sentiment as commodities slide persists. Hong Kong’s Hang Seng stock market index fell 3.5%. China’s stocks are falling despite expectations of more stimulus after weak growth statistics released on Tuesday. Yesterday the China Securities Journal reported that the government could raise deficit spending to around 3% of GDP.

Today at 16:00 CET Bank of Canada Rate Decision will be announced. The central bank is expected to keep the interest rate at 0.5%.

Oil futures prices resumed the decline today after Brent closed higher on Tuesday. March Brent crude rose 0.7% to $28.76 a barrel on London’s ICE Futures exchange on Tuesday, while February WTI crude fell 3.3% to $28.46 a barrel on the New York Mercantile Exchange. After sanctions on Iran were lifted investors are concerned higher crude oil exports from Iran will add to global glut at the time when global demand is expected to fall due to economic slowdown. International Energy Agency report released on Tuesday forecast around 1 million barrels a day of excess supply in 2016.

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

$20 Trad able Free Forex No Deposit Bonus – Continue Fx

$20 Trad able Free Forex No Deposit Bonus – Continue Fx(0)

$20 Trad able Free Forex No Deposit Bonus on sign-up applicable on first trading account. Start trading with the $20 Trad able Free Forex No Deposit Bonus amount, you can withdraw you profit amount any time of the day. Link:  $20 Tradable Free Welcome Bonus Available to: All new trading account Bonus offer: $20 Trad

Up to 200% Withdrawable Cashback Rebates – ForexTime

Up to 200% Withdrawable Cashback Rebates – ForexTime(0)

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

50 USD No Deposit Bonus Trading with Bitcoin – UFX

50 USD No Deposit Bonus Trading with Bitcoin – UFX(0)

Start Forex Trading Bitcoin with UFX and Get a $50 Free Bonus. $50 Free Bonus is subject to your phone verification with UFX Account funding in Bitcoin requires a Bitcoin wallet Link:  $50 Forex No Deposit Bonus Promotion Link:  $50 Free No Deposit Bitcoin Bonus Link:  100% Real Money CashBack Promotion Available to: All new

Start Forex Trading with to get $100 Free Bonus – ACY

Start Forex Trading with to get $100 Free Bonus – ACY(0)

Start Forex Trading with ACY to get $100 Free Bonus. Initial deposit greater or equal to $400, you can claim $100 Forex Free Bonus. Link: Start Trading with to get $100 Bonus Available to: New and Existing clients Ending Date: 31 December 2017 Bonus Offer: Start Forex Trading with ACY to get $100 Bonus to

$888 Extra Forex Bonus Amount Promotions – FortFS

$888 Extra Forex Bonus Amount Promotions – FortFS(0)

$888 Extra Bonus Amount Promotions, All accounts take part in the 888 Extra Bonus Amount Promotions with the exception of Newbie, PRO and STAR live accounts. Link: $888 Extra Bonus Amount Promotions Link: $5 Forex No Deposit Welcome Bonus Link: Up to 50% Bonus of Every Deposit Link: 15% Support Margin Deposit Bonus Available to:

Deposit $500 to Receive a $350 Special Bonus – AvaTrade

Deposit $500 to Receive a $350 Special Bonus – AvaTrade(0)

Deposit $500 to receive a $350 Special Bonus up to 14000. This 35% Special Bonus Promotion is available to USD, EUR, AUD and GBP base currency accounts Link:  100% Bonus to Your First Deposit Link:  30% Sign-up Bonus on your Deposit Link:  30% Enjoy Reduction on Spreads Available to: All new account Ending Date: 31

$50 No Deposit Forex Cash Bonus today – Vantage FX

$50 No Deposit Forex Cash Bonus today – Vantage FX(0)

Open a live trading account and claim your $50 No Deposit Forex Cash Bonus today. $50 No Deposit Forex Cash Bonus is valid for two calendar months from the date it is credited to your trading account. Link:  $50 No Deposit Forex Cash Bonus Available to: New and Existing clients Ending Date: 31 December 2017

Forex Monthly Live Trading competition – Tickmill Ltd.

Forex Monthly Live Trading competition – Tickmill Ltd.(0)

Forex Monthly Live Trading Contest. Put your forex trading skills to test and win up to $1000 every Month! Forex Live Trading Contest is only available for clients of Tickmill Ltd.(FSA Regulated) Link:  Weekly Demo Race Trading Contest Link:  $30 Free Welcome Bonus Offer Link:  Forex Monthly Live Trading Contest Available to: All new traders

50% Deposit Bonus and $30 Free Trading Bonus – XM

50% Deposit Bonus and $30 Free Trading Bonus – XM(0)

Get 50% Deposit Bonus and $30 Free Trading Bonus. XM offers its clients multiple trading benefits to stay at XM, starting with a $30 Free Trading Bonus “No deposit required” Link:  $30 Forex No Deposit Bonus Link:  50% Deposit Bonus up to $500 Available to: All new trading account Bonus offer: 50% Deposit Bonus and

$50 Forex No Deposit Bitcoin Bonus Promotions – UFX

$50 Forex No Deposit Bitcoin Bonus Promotions – UFX(0)

$50 Forex No Deposit Bitcoin Bonus Special Promotion to all new trading account holder. Start Forex Trading Bitcoin with UFX and  Get a $50 No Deposit Bonus Link:  $50 Forex No Deposit Bonus Promotion Link:  $50 Free No Deposit Bitcoin Bonus Link:  Halloween Trick or Trade Competition Available to: All new trading account Ending Date:

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