Market Headlines – 26/1/2018

  • US equities reversed early losses yesterday to settle the session marginally higher following volatile moves in currency markets. The S&P 500 closed 0.1% higher, with Utilities and Healthcare contributing the most gains.
  • In currency markets, the dollar fell as low as $1.2536 against the euro immediately after the ECB press conference (as Mario Draghi’s comments indicated a degree of comfort with the current level of the euro), before falling to $1.2409 after President Trump suggested that the “dollar is going to get stronger and stronger and ultimately I want to see a strong dollar”.
  • The dollar resumed its move lower overnight, trading back up towards $1.2473 against the euro. Gold prices benefited from the weak greenback, gaining almost 1%.

 

Europe

  • The early strength of the euro and the pound unsettled European equity markets. The Euro Stoxx 50 index fell 0.4%, the German DAX lost 0.9% and the UK’s FTSE 100 settled 0.4% lower.
  • The ECB left both interest rates and its guidance unchanged yesterday, reiterating that its €30bn a month asset purchase scheme would continue beyond September, “if necessary”.

 

Asia

Asian equities traded mixed overnight. Japanese stocks fell 0.2% as the yen appreciated against the dollar as gains in Healthcare and Materials were offset by losses in Energy and Financials

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