World Bank adds to ‘risk off’

<p>The World Bank has added further pressure to the risk-off trend with European bourses initially trading over 1% lower. The World Bank is now expecting […]</p>

The World Bank has added further pressure to the risk-off trend with European bourses initially trading over 1% lower.

The World Bank is now expecting global growth to expand 3% this year and 3.3% for 2016, which shows downward revisions from 3.4% and 3.5% respectively.

The only upgrade was to the US growth forecast that was taken higher to 3.2% this year but the bank outlined the danger of reliance on the US as the only source of global growth.

The AUD initially broke the 0.8100 level as base metals remained under pressure following the recent trend in commodities markets, which saw Brent oil trade at 46.04 and WTI to 45.32 and just above yesterday’s lows as copper quickly traded limit down in Shanghai to a fresh five-and-a-half-year low. The lifestyle will again be the focus tonight as Australia releases its latest employment report.

The European court of Justice has initially commented on the ruling of the legality of the OMT this morning ahead of the final ruling due in the summer. The initial comments have led European bourses to stabilise as they comment that the OMT is in line with the ECB mandate.

However, I note a vague comment with regards to the implementation of the OMT that ‘certain conditions are met’, which I take to mean that the ECB will only buy bonds in ‘problem’ countries on the compliance of an agreed reform programme by that country.

US retail sales will be the focus this afternoon from across the pond, though the driver of the FX markets will be commodities and equities markets.





Supports  1.1790 1.1745 1.1700  | Resistance  1.1875 1.1915 1.1960




Supports  117.85 117.35 116.60  Resistance  119.10 119.80 120.30




Supports 1.5115 1.5060 1.5030  Resistance 1.5200 1.5240 1.5295




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.