16/05/2014

Good morning,

In Asia most of equity indices lost ground and Indian Sensex30 was the best performer of the region with a gain of 823.85 points at 24,729.45 (+3.45%)  because Narendra Modi bloc lead in 334 of 543 seats in the national election and investors like the plan regarding  job creations and growth that the new government should implement. In Japan the Nikkei lost 202 points at 14,097 (-1.41%) and in Hong Kong the Hang Seng closed at 22,685.24 (-0.20%), down 45.62 points.  The jump of bad loans in China did not have  a negative impact on the Shanghai Composite in today session and the gauge rose 1.53 points at 2,026.50 (+0.08%).

US equities had 2 consecutive losing session and the DJIA lost 167.12 points at 16,446.81 (-1.01%) and the S&P500 closed at 1,870.85 (-0.94%), down 17.68 points. Tech stocks overperformed other sectors and Nasdaq lost 31.34 points at 4,069.29 (-0.76%).  In Europe performances are slightly negative and the Stoxx50 is down 10.55 points at 3,152.67 (-0.33%) and the FTSE100 in UK is losing  2.29 points  at 6,838.6 (-0.03%).

In the FX market EurUsd is trading at 1.3715 (+0.0.4%), up 5 pips and GbpUsd is gaining 7 pips at 1.6798 (+0.05%). UsdJpy is down 2 pips at 101.56 (-0.02%).  EurGbp is unchanged at 0.8166 and both Aussie and Kiwi dollar are losing ground against the Greenback. AudUsd is trading at 0.9348 (-0.1%), down 10 pips and NzdUsd is losing 11 pips at 0.8632 (-0.13%).

Metals are negative during the European session and Gold is losing 3$ at 1,293 $/oz (-0.23%) and Silver is down 13 cents at 19.39 $/oz (-0.67%). Crude Oil is up 6 cents at 101.56 $/barrel (+0.06%) and Nat Gas is trading at 4.46 $/BTU (-0.22%).

At 09:00 GMT will be released the Eurozone Trade Balance and in US in the afternoon at 12:30 housing data ( Building Permits and Housing Starts) will be the most relevant data before spot equities will open and then U. of Michigan Confidence data likely will be the catalyst  for the direction of this afternoon risk appetite.

Have a nice weekend