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CentroFX 22112016 0


Last market movement day - 2016


UK Market Snapshot

UK markets closed in positive territory yesterday, bolstered by gains in precious metal miners and oil heavyweights. Meanwhile, economic data showed that UK’s Nationwide housing prices advanced more than anticipated in December. Fresnillo, Centamin and Randgold Resources climbed 4.6%, 4.7% and 4.8%, respectively, tracking gains in gold prices. Energy sector stocks, BP, Royal Dutch Shell and Tullow Oil edged up 0.5%, 0.6% and 1.2%, respectively. Old Mutual and Mediclinic International added 1.4% each. Bucking the trend, basic metals miners, Anglo American, Rio Tinto and BHP Billiton slid 0.4%, 0.5% and 0.8%, respectively, amid lower copper prices. Dixons Carphone slipped 0.1%, as it traded ex-dividend. The FTSE 100 gained 0.2%, to close at 7,120.3, while the FTSE 250 rose 0.1%, to settle at 18,029.5.

US Market Snapshot

US markets ended lower yesterday, as losses in financial firms offset a rise in healthcare stocks. Cempra tanked 57.4%, after the US Food and Drug Administration rejected its drug for pneumonia due to lack of additional safety data. Financial sector stocks, JPMorgan Chase, Goldman Sachs Group and Bank of America slid 0.7%, 1.0% and 1.5%, respectively. On the flipside, Fortress Biotech soared 21.0%, after it announced a breakthrough in its cancer study, stating that its phase 1 clinical trial of MB-101 achieved complete reduction in patient affected by glioblastoma. Sears Holdings jumped 10.0%, after the company stated that it had received a secured standby letter of credit facility, easing liquidity concerns. The S&P 500 fell marginally, to settle at 2,249.3. The DJIA slipped 0.1%, to settle at 19,819.8, while the NASDAQ eased 0.1%, to close at 5,432.1.

Europe Market Snapshot

Other European markets finished lower yesterday, weighed down by a slump in banking shares. Italian lenders, Unione di Banche Italiane, Banca Popolare di Milano Scarl and Banco Popolare declined 3.1%, 3.5% and 3.8%, respectively. Other banks, Credit Agricole, Commerzbank and Deutsche Bank lost 1.2%, 1.3% and 1.6%, respectively. Credit Suisse Group dropped 3.4%, on the back of media report that it is under investigation by the US Securities and Exchange Commission for sale of tuna bonds worth $850.0 million issued by Mozambique. Car makers, Peugeot, Bayerische Motoren Werke and Volkswagen shed 1.2%, 1.4% and 2.0%, respectively. The FTSEurofirst 300 index slid 0.3%, to close at 1,424.9. Among other European markets, the German DAX Xetra 30 fell 0.2%, to close at 11,451.1, while the French CAC-40 dipped 0.2%, to settle at 4,838.5.

Asia Market Snapshot

Markets in Asia are trading mostly higher this morning. In Japan, Takata has soared 21.2%, after news emerged that the company is heading towards a deal with the US Department of Justice over deadly airbag scandal. Toshiba has jumped 9.1%, snapping its recent losing streak. On the contrary, NTN and Sumitomo Metal Mining have shed 1.3% and 1.5%, respectively. Oil stocks, Inpex and Japan Petroleum Exploration have lost 1.1% and 1.3%, respectively. In Hong Kong, lenders, Industrial and Commercial Bank of China and Bank of East Asia have gained 1.1% and 1.4%, respectively. In South Korea, markets are closed on account of a holiday. The Nikkei 225 index is trading marginally higher at 19,147.3, while the Hang Seng index is trading 1.0% up at 22,003.6. Yesterday, the Kospi index advanced 0.1% to close at 2,026.5.


Technical Overview


Crude Oil

At 04:30 GMT today, Brent crude oil one month futures contract is trading 0.23% or $0.13 higher at $56.98 per barrel, ahead of Baker Hughes weekly oil rig count data, scheduled to release later in the day. Yesterday, the contract climbed 1.12% or $0.63, to settle at $56.85 per barrel, amid rising optimism over OPEC’s production cuts starting from January 2017. Meanwhile, the Energy Information Administration reported that US crude inventories rose by 600,000 barrels for the week ended 23 December 2016.


At 04:30 GMT today, Gold futures contract is trading 0.19% or $2.20 higher at $1160.30 per ounce. Yesterday, the contract advanced 1.51% or $17.20, to settle at $1158.10 per ounce, following a broad weakness in the greenback and losses in US equity markets.


At 04:30GMT today, the EUR is trading 0.36% higher against the USD at $1.0528. Investors will focus today on the US Chicago purchasing manager for December, slated to release later in the day. Yesterday, the EUR strengthened 0.80% versus the USD, to close at $1.0490. The US Dollar remained weaker against its major counterparts, after the US goods trade deficit widened in November from previous month.
At 04:30GMT today, the GBP is trading 0.18% higher against the USD at $1.2279. Yesterday, the GBP rose 0.27% versus the USD, to close at $1.2257, after data showed that UK’s housing prices advanced more than anticipated in December.

Fixed Income

In the US, long term treasury prices rose and pushed yields lower, amid weakness in US equities. Yesterday, yield on 10-year notes lost 2 basis points to 2.49%, while yield on 2-year notes declined 4 basis points to 1.22%. Meanwhile, 30-year bond yield fell 1 basis point to 3.08%..

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