EUR/USD in a vulnerable spot ahead of PMI data later
To be fair to Lagarde, she kept her moniker as the owl during her press conference. However, the softer risk mood and the fact that there was no hawkish tilt despite recent data improvement saw the euro pull back
Heads up: Several key speakers in Davos coming up in the session ahead
0930 GMT - BOE's Haskel to participate in a discussion on human capital
The discussion will be from 0930 GMT to 1015 GMT and will center around "Accounting for human capital". The agenda notes that it will poke at the question on 'how might policymakers measure the return
Eurostoxx futures +0.7% in early European trading
- German DAX futures +0.8%
- French CAC 40 futures +0.6%
- UK FTSE futures +0.7%
European pre-market: Steady tones amid virus concerns
There is little change among major currencies as markets are keeping more steady on the day amid concerns surrounding the new coronavirus outbreak. The situation isn't really weighing any further on the risk mood today but it is keeping markets more cautious.
Are Asian stocks due further falls post Lunar New year? Probably, yes.
According to a quick google search around 50,000+ people die from the flu each year. It is mainly the old or the already unwell who are most susceptible to the virus. In 2003 the total number of SARS death was 700+ from a total sample of 8000+ cases. Here is a
Gold still needs more to "break free"
Buyers are keeping some near-term momentum still after the attempt to break higher in overnight trading, but price action is still rather benign at this stage for gold.
ECB's Lagarde: Timetable of strategy review is ambitious
- Markets shouldn't pay too much attention to the review
- Doesn't rule out possible policy changes over the next 12 months
Trade ideas thread - European session 24 January 2020
The kiwi got a bit of a nudge higher after better NZ CPI data earlier but has consolidated around 0.6610-20 against the dollar since then. The euro is also keeping mildly weaker after a nudge lower in overnight trading.
Nikkei 225 closes higher by 0.13% at 23,827.18
As a result, we're seeing the Nikkei close little changed with the Hang Seng also just up by 0.1% currently amid the more tepid/cautious mood.
New coronavirus won't impact credit ratings at its current scale - Fitch
Adding that an increase in scale would put companies exposed to travel and tourism at most risk, including global airlines, gaming, lodging and leisure sectors. Further noting that the macroeconomic impact would initially hit Asia if the outbreak spreads.