EU Opening

Written on 06/08/2023


Key Global Events

The European Central Bank is seen busy publishing data on economic growth in the Euro Zone. GDP on an annual basis is expected to contract to 1.2%. On a monthly basis an economic slowdown to 0.0%. 

The Canadian central bank in the day yesterday raised interest rates after leaving the rate unchanged for two consecutive meetings. The BoC raised the rate to 4.75%. The cost of money is now at high levels not seen in 22 years.

Turkish lira collapses to record lows. Following the re-election of President Tayyip Erdogan, the USD/TRY cross gained more than 7 % on Wednesday.

A cautious start for European stock markets this morning. Milan's FTSE MIB -0.02%, Paris' CAC -0.09%, Madrid's IBEX +0.03%, London's FTSE +0.01%. Wall Street futures trade below par again. Dow Jones -0.08%, S&P500 -0.13% and the Nasdaq -0.38%.

Forex & Commodities

At the opening of European stock exchanges, the euro and sterling trade above parity against the greenback. EURUSD +0.09%, GBPUSD +0.09%. Among commodities, oil consolidates the sideways price phase by trading around $72.74. Gold trades around $1960 an ounce (+0.09%).

Index

Asia's markets were trading mixed. Japan's GDP rose to +0.7%. Tokyo's benchmark Nikkei 225 index retracts after last days rally closing at -0.85%. China's Hang Seng index trades at 19.312 trading at +0.26 Wall Street futures trade below par again. Dow Jones -0.08%, S&P500 -0.13% and Nasdaq -0.38%.

Global Macroeconomic Data 

EU - At 11 a.m. the central bank in Frankfurt will release Europe's economic growth figure. GDP on an annual basis is expected to contract to 1.2%. On a monthly basis an economic slowdown to 0.0%. 
US - At 2:30 p.m., the weekly report on unemployment benefit claims will be released. The forecast sees growth to 235K from 232K last week. At 5 p.m. weekly U.S. crude oil inventories will be released.