Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Firmer Euro Weighs On Continental Markets

By CMC Markets (David Madden)Stock MarketsJun 07, 2018 17:50
uk.investing.com/analysis/firmer-euro-weighs-on-continental-markets-200201886
Firmer Euro Weighs On Continental Markets
By CMC Markets (David Madden)   |  Jun 07, 2018 17:50
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Europe

Equity markets in Europe have been drifting lower this afternoon as a lack of positive news has weighed on the indices. The firmer euro has chipped away at the solid start the eurozone markets got off to this morning. The single currency is in demand due to hawkish remarks made by European Central Bank (ECB) policy makers yesterday.

House of Fraser announced that 31 of its 59 stores could close. A difficult trading environment, adverse foreign exchange movements, poorly located stores and higher business rates were blamed for the poor performance. Many firms operating in the retail sector are struggling. In April, profit warnings from retailers hit a seven-year high. House of Fraser has filed for a company voluntary arrangement (CVA), which needs to be approved by creditors, but this would give the company some much needed breathing space. A CVA could see landlords reducing their rent, and this could lead to fewer job losses. The changes could impact 2,000 jobs directly, and a further 4,000 jobs indirectly

Trading began at 9am this morning on the London Stock Exchange – an issue with pricing data was cited for the setback. The share price of the company is lower, and it managed to reach a fresh all-time high in early trading.

Auto Trader shares are in demand after the company revealed a respectable set of full-year numbers. Revenue and profit jumped by 7% and 10% respectively. The figures were just shy of analysts’ forecasts, but the market has reacted positively to the update. The firm blamed economic uncertainty for a decline in private listings, and foresees a continuation of the trend. The stock has been largely pushing higher since the end of last year, and if the positive move continues it could target 400p.

Kier Group (LON:KIE) confirmed it is teaming up with Homes England and Cross Keys Homes to build 5,400 homes in England over the next 10 years. Kier Group will account for 69% of the joint venture, but it only holds 50% of the voting rights. The project will focus on tackling the affordability issue, building homes in areas with a housing shortage, and tapping into the local workforce. The stock is in the red this afternoon.

US

The Dow Jones and the S&P 500 both hit levels not seen since mid-March. The major US indices have been broadly moving higher in recent weeks, and now there is a clear series of higher highs and higher lows.

Wilbur Ross confirmed that the US has reached an agreement with China’s ZTE (HK:0763). The company will have to pay a fine of $1 billion and employ a compliance team selected by the US. The agreement is seen by traders as an improvement in the relationship between China and the US, which might speed up trade talks.

FX

EUR/USD is higher today as the single currency is still benefiting from the hawkish comments made by two ECB policy makers yesterday. Peter Praet foresees higher wage growth and in turn a rise in inflation, while Jens Weidmann confirmed it is ‘plausible’ that the ECB could wind down the stimulus package this year.

GBP/USD had a positive start to the session but mixed housing data from the UK, coupled with political uncertainty, has led to major volatility in the pound. According to Halifax UK house prices grew at a slower pace in the three months until May when compared with the same period last year. While on a monthly basis, house prices rebounded in May. Speculation of in-fighting in the Conservative party around the Brexit ‘backstop’ arrangement has also pushed the pound around.

Commodities

Gold is marginally higher because of the softer US dollar. Recently the metal has struggled to break above $1,307, the 200-day moving average. The Federal Reserve is widely expected to hike interest rates next week. The metal might remain subdued until traders have a clearer picture about the Fed’s outlook for the rest of 2018.

WTI and Brent Crude has been driving higher today. The oil market has rebounded from the sell-off yesterday on the back of the latest inventory data. The report from the Energy Information Administration showed an unexpected increase in oil inventories, and a bigger-than-expected build in gasoline stockpiles.

DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.

No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Original post

Firmer Euro Weighs On Continental Markets
 

Related Articles

Edison Group
Sareum Holdings: SDC-1801’s Clinical Plan Modified By Edison Group - Nov 24, 2021

Sareum's (LON:SAR) lead asset SDC-1801 is inching closer to completing its preclinical toxicology studies, although the decision to pursue a capsule alternative to the original...

Firmer Euro Weighs On Continental Markets

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The inherent concept of such investments means that they are not suitable for the investor seeking income from such investments, and are only suitable for those who have the required experience and understand the market risks. You should carefully consider your investment objectives, level of experience, and seek advice from an independent financial advisor if you have any doubts.
Continue with Google
or
Sign up with Email