Morning traders. Thanks Trees.
Market wrap:
Shares have soft leads following mild losses in Europe and declines in key commodities after mixed Chinese economic data fuelled declines across Asia.
With US markets closed overnight for a public holiday, the March SPI 200 futures contract last traded at midnight seven points or 0.1% weaker at 5249. Dow futures were lately down five points or less than 0.1%.
The Stoxx Europe 600 index fell 0.1% after economic data from China showed economic growth was slowing. Germany's DAX pared a heavier loss to close 0.28% in the red following an earnings miss from Deutsche Bank. France's CAC dropped 0.1%. Britain's FTSE edged up 0.11% on reports that the International Monetary Fund plans to raise its UK growth forecast.
"It's reassuring to see markets holding steady in Europe, even after the move down in Asia and the disappointing comments from Deutsche Bank," Alex Neil, head of equity and derivatives trading at EFG Bank in Geneva, told Bloomberg. "If investors get behind the brave new world of decorrelation, there is still upside to many European stocks, and this will help us ride out some of the background risks, such as falling euro inflation and a Chinese slowdown."
Australian stocks pared losses yesterday afternoon after data showed Chinese economic growth slowed less than expected last quarter. Gross domestic product eased to 7.7% from 7.8% the previous quarter. Economists polled by Reuters had predicted growth of 7.6%.
Asian markets fell as December data missed targets. Fixed asset investment - a proxy for construction activity - declined to annual growth of 19.6% from 19.9%, retail sales to 13.6% from 13.7% and industrial production to 9.7% from 10%. Read more here.
The Shanghai Composite slumped below the psychologically-significant 2,000 level, falling 0.7% to 1,991. Hong Kong's Hang Seng lost 0.88% and Japan's Nikkei 0.59%.
Australia's biggest miners lost ground in UK trade as the price of iron ore fell further below the US$130 level. BHP retreated 0.19% and Rio Tinto 1.39%. Spot iron ore for import to China yesterday declined $2.50 to US$124.80 a dry tonne.
The downbeat reaction to the Chinese figures dragged on base metals. US copper for March delivery was recently down less than 0.1% at US$3.34 a pound. In London, copper gave up 0.4%, nickel fell 1% and aluminium, lead, tin and zinc all reversed.
Gold extended recent gains as recent movements in exchange traded funds suggested a recovery in investment interest. Gold for February delivery was recently ahead $2.10 at US$1,254.10 an ounce in electronic trade on Comex. Gold ETFs tracked by Bloomberg saw their biggest in-flow since October 2012 on Friday.
Oil dipped in electronic trade on concerns about the implications of a Chinese slowdown on energy demand. West Texas Intermediate crude oil for February delivery was lately down 65 cents or 0.7% at US$93.72 a barrel.
TRADING THEMES TODAY
RE-ASSESSING CHINA: The ASX trimmed fairly substantial losses yesterday afternoon following what was taken at first glance as a solid lunchtime Chinese economic update. Other markets were less enthusiastic. The Shanghai Composite closed below 2,000 for the first time since late August. The price of iron ore hit its lowest level in seven months and looks bearish in the short term. Read more here. Hong Kong and Japan also retreated, as well as base metals and oil. All that suggests there could be more downside here today, although much will depend on whether US futures indicate any concern and so far they are close to break-even.
ECONOMIC NEWS: No significant domestic news scheduled today. Europe releases economic sentiment data tonight. The focus tonight in the US will be earnings, with no significant reports scheduled.
Good luck to all.
daytrading jan 21 pre-market
- There are more pages in this discussion • 41 more messages in this thread...
This thread is closed.
You may not reply to this discussion at this time.
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
