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15 May 2014
Markets selling off, dollar extends losses
FXStreet (Edinburgh) - US equities are sharply retreating on Thursday following a mixed bag of data releases in the US economy and less auspicious results in the euro zone.
Higher consumer prices tracked by the CPI, multi-year lows from Initial Claims and the very positive reading from the Empire State index could not curb the negative sentiment from a lower-than-expected industrial production and capacity utilization followed by a drop in the NAHB index. Adding to the bearish mood, the Q1 GDP figures in the euro bloc surprised investors to the downside along with ‘in-line’ consumer prices. As of writing, DowJones is losing 1.16% followed by the S%P500, 1.15% and the Nasdaq, 1.10%. The greenback, gauged by the DXY is extending yesterday’s decline, currently hovering over the 80.00 mark.
Red was the dominant colour in the main European indices on Thursday reflecting investors’ concerns after the GDP figures in the euro area missed estimates for the first quarter. The IBEX35 was the worst performer, dropping 2.35% ahead of the CAC40, 1.25% and the DAX, 1.01%. The EUR/USD is looking to consolidate the rebound above the 1.3700 handle after bottoming out in multi-week lows around 1.3650.
In the commodities’ universe, the ounce troy of the precious metal is losing almost 1% below the $1,300 mark. The barrel of WTI is following suit, down 0.82% in the mid-$101.00s.
Higher consumer prices tracked by the CPI, multi-year lows from Initial Claims and the very positive reading from the Empire State index could not curb the negative sentiment from a lower-than-expected industrial production and capacity utilization followed by a drop in the NAHB index. Adding to the bearish mood, the Q1 GDP figures in the euro bloc surprised investors to the downside along with ‘in-line’ consumer prices. As of writing, DowJones is losing 1.16% followed by the S%P500, 1.15% and the Nasdaq, 1.10%. The greenback, gauged by the DXY is extending yesterday’s decline, currently hovering over the 80.00 mark.
Red was the dominant colour in the main European indices on Thursday reflecting investors’ concerns after the GDP figures in the euro area missed estimates for the first quarter. The IBEX35 was the worst performer, dropping 2.35% ahead of the CAC40, 1.25% and the DAX, 1.01%. The EUR/USD is looking to consolidate the rebound above the 1.3700 handle after bottoming out in multi-week lows around 1.3650.
In the commodities’ universe, the ounce troy of the precious metal is losing almost 1% below the $1,300 mark. The barrel of WTI is following suit, down 0.82% in the mid-$101.00s.