The Asian market is trading mixed as Hang Seng was down by 0.91% while Nikkei 225 was up by 0.37% and a CSI 300 was down by 0.87%. Chinese stocks
The European Union’s toughest-ever stress test was meant to leave banks with nowhere to hide. The results show how the bloc’s capital rules got in the
European index gained this week and has rebounded from its longest streak of weekly losses this year, spurred by encouraging earnings from Asos and GlaxoSmithKline Plc and by a surprise expansion in European manufacturing that signaled stronger growth in the region.
The US dollar eased this morning by 19 points to trade at 85.90 after rallying steadily last week. The rally in the U.S. currency is being driven by speculation the Fed is preparing to raise interest rates while policy makers in Japan and Europe will maintain or increase bond-buying programs to pump money into their economies. Futures contracts indicate the U.S. central bank will boost its benchmark rate by January 2016. However, upbeat market sentiments which led to decline in demand for the low yielding currency along with statement from central bank officials stating that central bank need to consider with delaying of its final round of QE tapering capped sharp upside movement in the DX. The currency touched a weekly high of 86.05 and closed at 85.82 on Friday.
The GBP traded on a negative note and declined around 0.5 percent. The currency plunged on the back of strength in the DX. However, upbeat market sentiments along with mixed economic data from the country restricted sharp downside movement in the Sterling Pound. The currency touched a weekly low of 1.5993 and closed at 1.6088 on Friday. The UK’s Prelim GDP grew at slow pace of 0.7 percent in Q3 of 2014 as against a rise of 0.9 percent in Q2 of 2014. Index of Services was at 0.8 percent in third quarter of current year from 1 percent in previous quarter of 2014. The pound climbed this morning at trade at 1.6105 on the weakness of the US dollar.
Gold is flat in the Asian session as traders seem to be more interested in currency moves as global sentiment turns positive after the ECB bank test. Crude oil is also flat in the early session as Brent oil falls another 34 cents to trade at 85.90 with WTI at 81.01