EU Market Open
Across European open markets opened up positively with the FTSE 100 up 1.54% and DAX up 1.78% after further easing from ECB, oil prices rise higher, and US jobless claims showing signs of a strong labor market to suggest anything but a recession is around the corner.
EU Corporate News
Old Mutual (LON:OML) announced FY15 results: Pre-tax adjusted operating profit (AOP) of GBP1.7 billion up 11% in constant currency, up 4% in reported currency. LON:FUM (excluding Rogge) at GBP303.8 billion up 8% in constant currency, 6% in reported currency. Interim dividend at 6.25p per share. Meanwhile the Co said it will separate Old Mutual Emerging Markets, Old Mutual Wealth, Nedbank (JO:NEDJ) and OM Asset Management (NYSE:OMAM) by end of 2018.
Volkswagen (DE:VOWG_p) has plans to cut thousands of administrative jobs in Germany, reported the WSJ citing two people familiar with the situation.
In Asia – Japanese stocks rose on as a weaker yen boosted the profit outlook for exporters while a bounce in global oil prices improved risk appetite. Nikkei ended up 0.5%. Chinese stocks was weighed down by the banking sector, as Beijing’s plan to allow debt-to-equity swaps by commercial lenders was viewed by some investors as being largely negative. The Shanghai Composite Index lost 0.7%.
The euro rose after the European Central Bank roiled markets by suggesting that it was done cutting interest rates for now. It jumped 1.6 % against the USD, but is currently trading at 1.1134 – down 0.36% on the day.
Oil prices were higher today supported by fresh investment and a strong yuan, which makes fuel cheaper for Chinese importers, but analysts warned that any price rally was premature as a global glut remained in place. U.S. crude futures were trading at $38.66 a barrel, up over 2%. Brent crude futures were at $40.73 a barrel. Friday’s stronger prices came following losses the previous day after a meeting between major producers to coordinate a freeze in output looked unlikely to even take place since Iran would not commit to attending.
US stocks ended little changed after the European Central Bank reduced interest rates but ECB chief Mario Draghi confounded investors who expected multiple rate cuts by saying more were unlikely. The S&P 500 gained 0.02%, to 1,989.57. Dollar General (NYSE:DG) were up 10.7% after it reported better-than-expected same-store sales growth. U.S. jobless claims fell more than expected last week to their lowest levels since October, pointing to sustained strength in the labor market that should further dispel fears of a recession.
Today’s Economic Events
GE 08:00: Feb Wholesale Price Idx MoM
GE 08:00: Feb F CPI MoM, exp.: 0.4%
GE 08:00: Feb F CPI EU Harmonized MoM, exp.: 0.4%
UK 10:30: Jan Trade Balance, exp.: -£3000
UK 10:30: Jan Construction Output SA MoM, exp.: 0.2%
US 14:30: Feb Import Price Idx MoM, exp.: -0.7%
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