Banks weigh on European indexes
European gauges were pulled down by declining profits from big financial names including Nordea, Munich Re and Raiffeisenbank, where profit declines were into double digits, although Sweden’s Handelsbank surprised on the upside with a forecast-beating profit rise.
Share this:
European gauges were pulled down by declining profits from big financial names including Nordea, Munich Re and Raiffeisenbank, where profit declines were into double digits, although Sweden’s Handelsbank surprised on the upside with a forecast-beating profit rise.
The Sino-US trade spat is slowly working its way through the system and is eroding trade not only with the US but also European countries. Germany reported Wednesday that manufacturing orders dropped again in December, particularly from outside the Eurozone, while Daimler, which sells most of its Mercedes-Benz cars to China, showed a decline in profits.
The markets across Asia remain quieter than usual with Chinese markets closed for the rest of the week for the Lunar New Year.
State of the Union address
President Trump’s State of the Union address was more conciliatory than expected, as the administration is now trying to reach some sort of middle ground with the now Democrat-led Congress, but with the absence of any major economic statements US markets slumped slightly after the speech. US stock futures are still trending down this morning signaling a lower start on Wall Street later in the day.
House builder surprises with positive results
In sharp contrast with the news flow over the last few months over the Brexit-induced state of the UK housing market, house builder Barratt Developments reported a 19% increase in pretax profits and said that the housing market remains strong.
On the Brexit front, the Prime Minister is due to meet with Northern Ireland’s political parties in a move designed to ensure the DUP’s support for her proposal. But despite her best intentions she is likely to run into resistance from Brussels, were politicians are repeatedly saying they are not keen to renegotiate the current proposal. As the likelihood of a hard Brexit increases by the day, the finger pointing blame game has started, which will do little to help markets, particularly currencies. Still, the pound is holding its ground in early trade and has gained against the dollar and the euro.
The Sino-US trade spat is slowly working its way through the system and is eroding trade not only with the US but also European countries. Germany reported Wednesday that manufacturing orders dropped again in December, particularly from outside the Eurozone, while Daimler, which sells most of its Mercedes-Benz cars to China, showed a decline in profits.
The markets across Asia remain quieter than usual with Chinese markets closed for the rest of the week for the Lunar New Year.
State of the Union address
President Trump’s State of the Union address was more conciliatory than expected, as the administration is now trying to reach some sort of middle ground with the now Democrat-led Congress, but with the absence of any major economic statements US markets slumped slightly after the speech. US stock futures are still trending down this morning signaling a lower start on Wall Street later in the day.
House builder surprises with positive results
In sharp contrast with the news flow over the last few months over the Brexit-induced state of the UK housing market, house builder Barratt Developments reported a 19% increase in pretax profits and said that the housing market remains strong.
On the Brexit front, the Prime Minister is due to meet with Northern Ireland’s political parties in a move designed to ensure the DUP’s support for her proposal. But despite her best intentions she is likely to run into resistance from Brussels, were politicians are repeatedly saying they are not keen to renegotiate the current proposal. As the likelihood of a hard Brexit increases by the day, the finger pointing blame game has started, which will do little to help markets, particularly currencies. Still, the pound is holding its ground in early trade and has gained against the dollar and the euro.
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
EUR/USD Update: Will Fed Expectations Keep Pressure on the Euro?
The week continues to present challenges for the euro's short-term strength. This is reflected in the recent performance of EUR/USD, which has declined by nearly 0.6% over the last three trading sessions
EUR/USD Forecast: Euro Extends Losses Ahead of Fed Rate Decision
The euro has started to face a more challenging period in the short term. The EUR/USD pair has already declined by nearly 0.81% over the last four trading sessions, a move that has begun to reinforce a meaningful bearish bias in favor of the U.S. dollar.
EUR/USD Analysis: Euro Attempts to Recover Following the ECB Decision
Today's session has been particularly relevant for the euro's performance in the short term. After the EUR/USD registered a decline of nearly 0.3% during the session, the European currency has managed to recover a large part of its losses.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.