Feb 04


  • BY:
  • February, 04th, 2014 8:08 +00:00

Good morning,

Equities in Japan dropped 611 points and the Nikkei closed at 14,008 (-4.18%). In Hong Kong the Hang Seng lost 600 points at 21,434.7 (-2.73%).European equities likely will open in negative territory: The Eurostoxx 50 index future is losing 0.7%.

In the currency market AusUsd is up 142 pips after the Reserve Bank kept unchanged interest rates.  The pair is trading at 0.8903 (+1.71%) and the EurUsd is unchanged at 1.3528. Even Japanese equities tumbled UsdJpy is managing to stay flat at 101.02. GbpUsd is down 19 pips at 1.6285 (-0.12%).

Risk reversal trades that are taking place on equities are not affecting yet the FX market. This could be explained in two ways: the wake up call has not been strong enough yet (waiting for a breakout of the VIX) or the level of support is very close.  We figure out that on the next trading session but for sure the intraday range of many asset is going to increase.

Metals are up today as well: Silver is trading at 19.48 $/ounce (+0.62%) and Gold is at 1,259.59 $/ounce (+0.14%). Crude Oil is trading at 96.61 $/barrel (+0.19%) and Natural Gas is at 5.07 $/BTU (+2.42%)

At 9:30 GMT in UK will be released the construction PMI and at 15:00 GMT in US Factory Orders data will be important to evaluate the US self sustained growth.