20/02/2014

Feb 20

FUNDAMENTAL ANALYSIS BY NSFX 20.02.2014

  • BY:
  • February, 20th, 2014 9:36 +00:00

Good morning,

The Nikkei lost 317 points at 14,449 (-2.15%) and the Hang Seng in Hong Kong lost 270 points at 22,394.08 (-1.19%). Chinese manufacturing data below the expectations triggered risk reversal trades across all markets.

In Europe at 09:16 GMT  the Stoxx50 is losing 33.26 points at 3,087.54 (-1.07%) and the DAX in Germany is down 9,534.65 (-1.30%), down 125 points. In UK the FTSE100 is trading at 6,758 (-0.57%), down 38.71 points.

In the currency market EurUsd is losing 32 pips at 1.37 (-0.24%) and UsdJpy broke area 102 and is trading at 101.8 (-0.5%).  GbpUsd is losing 30 pips at 1.665 (-0.18%).  UsdChf is gaining 13 pips at 0.8897 (+0.15%).

Metals are trading in positive territory and Gold is up 2.63$ at 1,314 $/ounce (+0.2%) and Silver is at 21.65 $/ounce (+0.51%). Crude oil is trading at 103.23 $/barrel (-0.08%) and Natural Gas is above 6$/BTU (-1.30%).

China has a considerable weight in risk taking positions and the PMI data likely will spread to US. Tension in emerging markets could put under pressure some leveraged hedge funds with exposure in those markets and create the conditions for a sudden selloff.