How will the markets move today? This extensive 7 February Market Moving Fundamental Events analysis from reveals the key market drivers you’ll need to keep a tab on. Dig in!
7 February, HotForex –Bund yields are higher in early trade, with the 10-year up 1.4 bp at 0.7% as of 7:28 GMT, the 2-year up 0.4 bp at -0.576%, leaving the curve steeper once again as European stock futures move higher, with the DAX future leading the way and up 0.86% after a late rally on Wall Street yesterday.
Asian markets also tried to recover, but the rally started to fizzle out later in the session as rate hike concerns resurfaced and while the Nikkei managed a small gain of 0.16%, the CSI 300 closed with a loss of -2.37%.
European Market Outlook
The relationship between bond and stock markets remains ambiguous but for now, improving risk appetite is underpinning stocks and the outperformance of Eurozone peripheral bond markets, versus Bunds. Released at the start of the session, German industrial production corrected -0.6% m/m in December, broadly in line with expectations after a 3.1% m/m rise in November. Still to come are U.K. house price numbers and a German 10-year auction.
The dollar traded mixed versus its major peers and developing world currencies, losing ground to the yen, euro, and sterling, among others, while gaining versus the Australian dollar and some other currencies, including the New Zealand dollar after a short-lived rally the antipodean currency in the wake of an above-forecast Q4 employment report.
Wall Street staged a solid rebound yesterday, and Eurostoxx futures are pointing to a positive open on European bourses, though S&P futures have shed 0.8% in overnight trade and Asian markets turned lower, giving back intraday gains and turning negative in some cases. Japan’s Nikkei 225 closed with a fractional 0.2% gain, while the Shanghai Composite is showing a loss of 1.8%, and South Korea’s KOSPI a 2.3% loss.
This backdrop saw USDJPY and yen crosses grind lower, giving back some of the rebound gains seen yesterday during Wall Street’s rebound. Volatility is likely to remain high in the coming sessions, and we expect to see further dollar and yen outperformance relative to most other currencies.
Main Macro 7 February Market Moving Fundamental Events
- Non-monetary policy’s ECB meeting
- Crude Oil Inventories
- Canadian Building Permits – projected to expand 2.0% in December after the 7.7% tumble in November.
- RBNZ Monetary Policy Statement – The 1.75% policy setting expected to be left in place.
- RBNZ Press Conference at 21:00 GMT
This article about 7 February Market Moving Fundamental Events was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
All information provided gathered from reputable sources. Any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. We assume no liability for any loss arising from any investment made based on the information provided in this communication.