Europe
After a nervous finish last week, European markets didn’t do too much today with late losses from US data ahead of a big week for global economic reports and corporate earnings.
On the bottom end, lost investor assets saw Aberdeen Asset Management (LONDON:ADN) pull down the financials including Royal Bank of Scotland (LONDON:RBS) which was undoing some last week’s surprise profit announcement gains.
The German DAX underperformed again on Germany’s exposure to Russia this time on a ruling by a court in The Hague that Russia must compensate former Yukos shareholders to the tune of $50bn. It’s doubtful that Russia will pay the fine issued in the Hague but failing to do so will be another reason to pile on the sanctions perhaps including the energy sector which with the biggest trade ties will hurt Germany the most.
Shares in Ryanair (LONDON:RYA) few higher today in contrast with the loss of altitude seen in easyJet last week. The airline reported an increase in earnings and revised higher its full-year forecast.
US
A big week for economic data from the US didn’t get off to the best of starts with a services PMI index and housing data both disappointing and sending the Dow below 16,900 and the S&P 500 below 1970.
New Homes sales were a disappointment last week in what some saw as a resurgent US housing market; today’s pending home sales suggest a more broad-based problem in the housing market recovery before it even go going again.
With Microsoft, Visa, McDonald’s and a few other Dow components not pulling their weight in earnings, the Dow failed for the seventh time to break through 17,150 while the S&P 500 is pulling back as it approaches 2,000.
Dollar Tree (NASDAQ:DLTR) was a top riser as it confirmed it would buy rival discount store Family Dollar (NYSE:FDO).
FX
Most major currency pairs flatlined today ahead of key economic data including the latest from the FOMC and the US jobs report later in the week. The US Dollar was mostly lower today with commodity currencies the Canadian and Australian dollar fairing the best despite a drop in commodity prices.
Commodities
Crude Oil was dropping today with Brent crude losing almost a dollar below $107 per barrel while WTI failed to hold $103.
There was nowhere to hide as gold and silver dropped alongside most other asset classes in fairly broad-based selling. The precious metals are likely to be fairly stable until there is more information on the FOMC’s interpretation of US inflation on Wednesday.
Corn prices were showing signs of stabilisation above £3.65 per bushel after the sell-off seen since reports of a better than expected US corn crop this season.
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