US Pre NY Open Briefing 19.04

US Pre NY Open Briefing 19.04

The main theme of the morning was a reversal of yesterday moves. With lack of important data in the calendar, the market tries to digest what has happened over last few days.

Stock markets in Europe were mixed on Wednesday morning as investors digested news of snap elections in the U.K. and fresh earnings reports. In Europe, the pan-European Stoxx 600 was slightly higher with most sectors trading in positive territory. Basic resources stocks led the gains in early deals on earnings reports. Rio Tinto jumped 1.1 percent ahead of an earnings publication due out on Wednesday evening.
Bank stocks were also higher with Banco Popular climbing 3.4 percent in early deals. The Spanish bank Santander raised 750 million euros on Tuesday after selling perpetual bonds - a bond with no maturity date - according to Reuters.

That supported banks in Europe, with Commerzbank and Deutsche Bank that were among leaders in the DAX index. Speaking about banks it’s hard to avoid the topic of Goldman Sachs. The most known bank has published much weaker report that led to a decline on Wall Street.

The British pound’s big rise after Prime Minister Theresa May called an early election has not convinced everyone that the toll of exiting the European Union on the UK economy will be any less painful, but it has reinforced thinking that the currency is cheap. The pound settled at its highest level since October against the US dollar, at 1.2800 up around 2 per cent, and the pair broke above important resistances for the first time since the referendum on Britain’s European Union membership was held.

Australia’s dollar fell for a second day as iron ore extended declines and falling equity markets sapped demand for higher-yielding assets. The Aussie has tumbled almost 0.8 percent over two sessions, and is approaching its 100-day moving average, fueled by weakness in iron ore, the nation’s largest export commodity. Iron ore sank to a six-month low overnight as previously bullish traders rushed to exit positions amid rising glut worries

The latest weekly American Petroleum Institute (API) inventory data for the week ending April 14th reported a draw of 0.84 million barrels. This was the third successive draw following a drop of 1.30 million barrels last week, but only the 5th decline in stocks in the last 14 weeks. Consensus forecasts were also for a larger draw in inventories of around 1.5 million barrels and there was market disappointment on release.
In terms of data, the euro zone received final March inflation figures that confrimed a dip in the pace of rise in prices. Later, the International Monetary Fund is releasing the main chapters of its Global Financial Stability Report.

About Author

Our research team will provide all technical and fundamental news as well as all inside information coming from London's City desks to help investors trade fx and stock markets. Be sure that you already follow our twitter account @XMarketsuk in order to be up to date with all latest analysis, news and inside information.

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. X Markets and XSpot. do not take into account your personal investment objectives or financial situation. X Markets and XSpot. make no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any member of X Markets Websites’ team, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of X Markets and XSpot. This communication must not be reproduced or further distributed without prior permission.

Risk Warning: Forex (FX) and Contracts for Difference (’CFDs’) are complex financial products that are traded on margin. Trading FX and CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, FX and CFDs may not be suitable for all investors because you may lose all your invested capital. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved taking into account your investment objectives and level of experience. Past performance of FX and CFDs is not a reliable indicator of future results. Most FX and CFDs have no set maturity date. Hence, a CFD position matures on the date you choose to close an existing open position. Seek independent advice.