Stronger Dollar and European Share Prices
January 12, 2015
The U.S. dollar has risen by 0.8% against the kiwi, 0.6% versus the yen, 0.5% relative to the Australian dollar, 0.4% vis-a-vis the euro, 0.3% against the Swiss franc and 0.2% relative to sterling. The loonie is steady, and the yuan has edged 0.1% higher.
In European stock market action, the Paris Cac so far has advanced 1.7%, followed by gains of 1.6% in the German Dax, 1.4% in the Madrid IBEX, and 1.0% in the Italian and Swiss stock exchanges. The British Ftse is 0.5% higher. Japanese markets were shut for Coming of Age Day. Elsewhere in the Pacific Rim, stocks lost 0.9% in China, 0.8% in Australia, 0.6% in Indonesia, 0.4% in Taiwan, and 0.2% in South Korea but rose 0.5% in New Zealand and India.
The ten-year British gilt yield rose a basis point, while the 10-year German bund is unchanged.
WTI oil sank 2.5% to $47.15 per barrel. Comex gold is 0.3% firmer at $1,220.10 per ounce.
There was an enormous peaceful gathering in Paris to protest last week’s reign of terror.
The Bank of France’s manufacturing sentiment index posted a December reading of 96, same as in October, September and July and a point less than the 97 score in November and August. Business sentiment in services also fell last month, registering a score of 91 after 93 in the prior five months. The Bank of France is sticking to a forecast GDP uptick of 0.1% last quarter in its monthly forecast, however.
Ireland’s construction purchasing managers index dipped 0.2 points to a still-robust reading of 63.1 in December. That was the fifth 60+ result in a row but represented a 3-month low.
Retail sales in the Czech Republic rose 0.4% on month in November but a considerably smaller 4.1% 12-month advance adjusted for working day variations.
Danish consumer prices fell 0.2% on month in both November and December. The 0.3% 12-month rate of rise was down from 0.5% in the three previous months.
Australian home loans data disappointed with a drop of 0.7% in November, the third decline in four months. Analysts were looking for an increase of more than 1.5%.
Factory output in South Africa also were considerably weaker than assumed, posting a drop in November of 2.1% on month and 1.3% on year.
No market-moving U.S. data releases are scheduled today, but the NFIB index of small business sentiment, the Labor Department JOLTS index, and the IBD/TIPP index arrive Tuesday as well as the usual weekly chain store sales numbers.
Copyright 2015, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
ShareThis
