Mar 03


  • BY:
  • March, 03rd, 2014 9:22 +00:00

Good morning,

Equities in Japan lost 189 points at 14,652 (-1.27%) and in Hong Kong the Hang Seng closed in negative territory as well. The index closed at 22,500.67 (-1.47%), down 336.29 points.  In China the Shanghai Composite had a positive session and closed at 2,075.24 (+0.92%), up 18.93 points.

In Europe equities are dropping; geopolitical tensions in Ukraina, profit taking in a session that will be rich of macro data and thus volatility are sending gauges in negative territory.  The Stox50 is trading at 3,083.8 (-2.08%), down 65.43 points and in Germany the DAX is losing 230.18 points at 9,461.9 (-2.37%).

There is a risk reversal sentiment on UsdJpy, now at 101.34 (-0.45%), down 45 pips. The pair gapped below 102 area; EurUsd is trading in a low volatile environment and the cross rate is at 1.3782 (-0.14%), down 20 pips.  GbpUsd at 1.6719 (-0.15%) is losing 25 pips.

Precious metals are soaring today: Gold is at 1,346.65 $/ounce (+1.51%) and Silver is trading at 21.59 $/ounce (+1.05%).  Crude oil at 103.84 $/barrel (+1.22%) gapped up during Sunday session.

Many macro data are going to be released today and the most relevant figures would be the ISM Manufacturing  at 15:00 GMT.

Volatility is likely to increase, metals are rising because traders are looking for safe haven trades and if the Japanese Yen will gain ground probably we will see risk reversal carry trade strategies.