Europe’s bourses are steady in the run-up to the Dutch elections. Oil heads into its second day of losses, down 0.2%.
Commodity’s Corner
Taking centre stage once again, after weeks of trading in the narrow range of $52-$55 per barrel, yesterday oil broke though the equilibrium and OPEC members cringe as oil drops to a low of $48.29. Increased inventories spurred the bearish tones. Brent oil is in a similar position, down 0.2% at $51.29.
Gold is trading downwards this morning. The bullion is uninspired by the geopolitical risk looming in Europe and instead is focused on the almost certain rate hike. The precious metal is hovering at $1200 this morning.
Exhausted Equities
Giving up some gains made from the infamous 2017 rally, indices are trading mostly lower this morning. The bearish tones stem from the impending Dutch elections. The campaigns come to a close tomorrow as Dutch polling stations open. Europe will look on as the nail-bitingly close election comes to fruition.
- The CAC 40 is down 0.44% at €4970.50
- The DAX 30 is down 0.22% at €11976.00
- The FTSE MIB is down 0.38% at €7292.00
US equities are trading lower on the eve of the interest rate decision. Janet Yellen and her colleagues will almost certainly raise interest rates by .25 basis points and equity traders are turning bearish in anticipation.
- The S&P 500 is down 0.2% at $2366.50
- The DJ 30 is down 0.2% at $20802.00
- The Russell 2000 is down 0.2% at $1365.80
- The Nasdaq 100 is down 0.16% at $5390.50
Slumping Sterling
In the United Kingdom, prime minister Theresa May has received permission to trigger article 50, which will start the formal two-year negotiation process to leave the EU. The news sent the pound lower as investors fear the implications of a sovereign Britain. Not even the sliding sterling can boost the FTSE 100 as it lays flat in this morning’s session.
It is rumoured that Theresa May could initiate the divorce proceedings as early as today.
Adding to Britain’s anxieties is Scotland. The region that voted to stay in the EU has threatened to leave the UK.
Forex Strengthens
The euro is inching upwards in the wake of the Dutch elections. The dollar is also tipping upwards in anticipation of the interest rate decision.
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12:30 (GMT) USD PPI