Here are the latest developments in global markets:
FOREX: The dollar index stretched its downtrend toward a fresh three-month low of 92.34 (-0.26%) as investors stood less confident on the outlook of the US economy, while gains in the euro and the pound pressured the index even further. Euro/dollar hit a three-month high of 1.1986 (+0.33%) and pound/dollar (+0.41%) surged to a three-week high of 1.3511. The kiwi, the aussie and the loonie drifted higher relative to the greenback to levels last seen in October.
STOCKS: The pan-European STOXX 600 and the blue-chip Euro STOXX 50 were flat at 1000 GMT, though, they were on track to post the strongest annual performance in four years. The Italian FTSE MIB tumbled by 0.46% after Italy’s president dissolved the parliament on Thursday, opening the way for elections on March 4. The British FTSE 100 jumped to a fresh record high driven by rising tech shares and was 0.17% up on the day. The German DAX declined by 0.24% and the Spanish IBEX 35 fell by 0.30%. Futures on major Wall Street indices were all pointing to the upside.
COMMODITIES: Oil prices remained up on the day near mid-2015 peaks. WTI crude and Brent were last seen at $60.15 (+0.52%) and $66.47 (0.45%) per barrel respectively. Gold was building momentum on the back of a weaker dollar at $1,296.55 per ounce (+0.15%).
Day ahead: German CPI index & Baker Hughes oil rig count gather attention
Looking forward, market moves are expected to be limited in the last trading day of the year, with German preliminary inflation figures and the US Baker Hughes oil rig count being the only to gather attention. German and UK are scheduled to close earlier than usual during today’s trading.
According to forecasts, the German CPI due at 1300 GMT is said to slow down to 1.5% on a yearly basis in December compared to 1.8% seen in November. If true, this would be the lowest level reached since May. On a monthly basis though, the measure is anticipated to climb by 0.2 percentage points to a nine-month high of 0.5%. The harmonized equivalent gauges will also accompany the above data.
In oil markets, the Baker Hughes company will give an indication of the number of active US oil rigs for the week ending December 22. The measure has been trending at two-year highs during 2017.
