Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Peaceful End To Mad First Quarter

By CMC Markets (Jasper Lawler)Market OverviewApr 01, 2016 07:21
uk.investing.com/analysis/peaceful-end-to-mad-first-quarter-200123570
Peaceful End To Mad First Quarter
By CMC Markets (Jasper Lawler)   |  Apr 01, 2016 07:21
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

UK and Europe

End-of-month repositioning and caution ahead of Friday’s US unemployment report led to mixed trading in European markets on the final day of a very volatile first quarter.

On the FTSE 100, Tui (LON:TUIT) led the gainers, whilst miners gave back some of the big gains made this week. A report showing the biggest outflows from British property funds since 2008 has seen REIT British Land drop towards the bottom on the UK equity benchmark.

TUI shares jumped after reporting an uptick in summer holiday bookings to destinations such as Spain and the Canaries to offset a drop in popularity of Turkey and Egypt after terrorist attacks. Other leisure and tourism stocks including InterContinental Hotels Group (LON:IHG), Carnival (LON:CCL) and Merlin Entertainments (LON:MERL) basked in TUI’s brilliance.

The sharp reversal in oil prices on Wednesday in combination with a four-week low in the price of copper has prompted some profit taking in UK-listed miners including BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO).

US

US stocks were flat to slightly negative in early trading as traders sit on their hands ahead of Friday’s jobs report. The Yellen-put rally has lost some momentum on the last day of the quarter.

FX

The US dollar lost more ground on Thursday, taking the dollar index to a fresh five-month low to record its worst quarter in five years. Positioning had been so bullish on the dollar because of the outperformance of the US economy and the natural assumption the Fed would tighten policy in response. The assumption that the Fed would begin a steady stream of rate hikes in response to unemployment back at its natural rate has proven to be false.

Largely as a result of dollar weakness but also because of rising Eurozone inflation, the euro popped back above 1.14 to against the greenback for the first time since October.

A stronger than expected reading for UK GDP, which rose to 0.6% q/q, did little to assist the British pound, which is still wallowing in concern over Britain’s possible exit from the Eurozone.

Commodities

The price of crude oil rebounded on Thursday with news that China may overtake the US as the world’s biggest importer, supported by another drop in the US dollar. Brent crude remains near the bottom of a $3 trading range that’s been in place since breaching $40 per barrel. On Wednesday another build in US weekly crude inventories spooked oil traders into retreat, prompting fears that the WTI contract has put in a short-term top at $40 per barrel.

Copper prices bounced back from a four-week low but remain below $2.20 per lb, which had been supporting prices throughout March.

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

Peaceful End To Mad First Quarter
 

Related Articles

Neil Wilson
Travel Stocks Lead Gains In Europe By Neil Wilson - Sep 17, 2021

European markets on a firmer footing on Friday – FTSE 100 made a bold move at the open to recapture the week’s intraday high at 7,093 struck on Monday before pulling back, still...

Peaceful End To Mad First Quarter

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