After the Monday holiday, European indices started the week with moderate gains, with investors shrugging off last week’s risk concerns and commodity producers declining with Oil.
Stoxx 50 gained 0.36%, FTSE 100 and DAX sway around Friday closeing levels, CAC 40 gained 0.56% and IBEX appreciated by 0.31%. Stocks are rising ahead of Janet Yellen speech at Economic Club in New-York and Consumer Confidence report which is anticipated to show 94.0 points in March. Yellen is expected to underscore global risk still substantially weighs on growth potential of US economy and any premature actions in rising borrowing costs may have more adverse than positive consequences.
EUR/USD rose 0.10% to 1.1213, USD/JPY pared down gains to 113.70, retreats to 113.45 level (0.00%), Pound strengthened against US Dollar by 0.36% to 1.4305, AUD/USD as well as USD/CAD drop on commodities slump and growing worries that deterioration on the commodity market may deepen.
WTI futures plunge by 1.93% below the $39 level to $38.63, as the confidence grows that Oil rally doesn’t contain respective fundamental changes – bluntly speaking, the gains are pure speculations and the oil glut remains an issue. There are worries that the commodity sell-off may be soon triggered by the growing disappointment of its weak performance. All focus is now on tomorrow’s crude inventories data from the EIA, which will show whether the US continues to increase crude imports, while the country’s production drops.
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