Market Brief: stronger Eurozone data lifts euro

A summary of news and snapshot of moves ahead of the US session.

  • At 13:30 GMT, the euro and yen were the strongest while North American dollars brought up the rear. Gold edged higher, stocks were mixed and bond yields fell back a little after yesterday’s gains. It has been a quieter session thus far, hopefully ahead of a bit more volatile US session later.

View our guide on how to interpret the FX Dashboard

  • EUR managed to rebound a tad after yesterday’s sell-off on the back of better than expected data. Eurozone Final Services PMIs were revised higher with Italian flash PMI coming in one whole point better than expected. Meanwhile German factory orders rose 1.3% against 0.1% expected, while Eurozone retail sales was in line with a gain of 0.1% month-over-month.
  • NZD recovered after initially dropping in Asian session when it was hurt by weak New Zealand employment data, which boosted expectations for RBNZ to cut rates again.
  • Gold was somewhat desperately trying to cling onto key support around $1480, finding mild support thanks to the stock market rally pausing for a breather. The precious metal fell sharply on Tuesday, partly because we saw further unexpected improvement in economic data and thawing of US-China trade frictions, both helping to underpin the buck and undermine haven assets. But the buck and yields were both a touch weaker, allowing the metal to rebound.
  • JPY was showing strength after being one of the weakest currencies over the previous two sessions. It was supported by short-side profit-taking as stocks eased back a tad.

  • Stocks: Here are some of today’s main company news, courtesy of colleague Ken Odeluga:
    • Marks & Spencer surged almost 8% initially on glimmers of hope in its flagship clothing division. The stock later faded to rise of 2%-4% as firm food sales contrast with weak profit growth and a 2.1% revenue drop.
    • Intu Properties - 20% after warning it will probably need to raise fresh equity as the commercial rent downtrend shows no signs of abating.
    • U.S.-listed shares of Japan's Softbank point lower after the WeWork investor reported a $6.5bn quarterly loss, its first in 14 years.
    • BMW beat Q3 core profit estimates though kept guidance unchanged.
    • SocGen  +5.6%: Despite a big drop income from equities, strong capital growth proves to be a relief.
    • Coty beat on Q1 EPS, shares indicated higher.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.