Stocks and Commodities Show Better Tone
May 20, 2016
Share prices in Europe have thus far recovered today by 2.3% in Greece, 1.3% in the U.K., 1.1% in France and Italy, 1.0% in Switzerland, and 0.9% in both Germany and Spain.
Most markets in the Pacific Rim closed higher, too, such as Japan (0.5%), Australia (0.5%), Singapore (0.9%), China (0.7%), Hong Kong (0.7%), and Taiwan (0.4%).
West Texas Intermediate crude oil at $48.33 has advanced 0.4%. Gold rose 0.3% to $1,257.90 per ounce. Other metals are firmer, too.
The 10-year British gilt yield rose three basis points, but the 10-year Japanese JGB yield is and additional four basis points below zero at -0.12%. German bunds are unchanged.
Today’s most depreciated currency is the yen, down 0.4% against the dollar, which also shows 0.1% upticks against the loonie and sterling. The dollar is unchanged against the yuan, Swissie and Aussie dollar and down by 0.2% versus the euro and kiwi. Stronger oil lifted Norway’s krone.
German producer prices edged up 0.1% on month in April but remained 3.1% lower in year-over-year terms. Energy posted a smaller 8.8% on-year drop. Other producer prices were 1.0% lower than a year before after posting 12-month declines of 0.9% in March, 0.7% in February and 0.6% in January.
Minutes from the ECB Governing Council meeting of April 20-21 express concern over vocalized doubts from analysts and market players that monetary stimulus will lift inflation back to target and the failure of oil’s recent rebound to boost expected inflation.
Euroland has a EUR 27.3 billion current account surplus in March, a 4-month high. The surplus during the 12 months through March equaled 3.1% of GDP, up from 2.7% in the previous 12-month period.
The British industrial trends survey compiled by the CBI printed three points higher in May at a 5-month high of -8.
Danish retail sales in April were 1.1% higher than a year before. Irish producer prices were 3.8% lower in April than a year earlier.
Britain’s index of leading economic indicators stagnated in March, while Germany’s went up 0.6%.
Japanese department store sales recorded a 12-month contraction in April of 3.8%, greater than that of 2.9% in March. Sales in Tokyo fell 1.5% on year.
U.S. existing home sales and Canadian consumer prices and retail sales figures will be reported today.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Eurozone current account, German PPI, Japanese department store sales