Here are the latest developments in global markets:
FOREX: The euro erased earlier losses against the dollar, bouncing up to an intra-day high of $1.2423 (+0.22%) after Eurostat revised upwards GDP growth readings for the third quarter. Sterling managed to rebound to $1.4111 (+0.38%) after reaching a one-week low at 1.3979 during the Asian session. On the other hand, the dollar, stretched its downleg towards 108.52 versus the yen (-0.31%) and reversed yesterday’s gains against a basket of major currencies, falling to 89.08 (-0.27%) as Treasury yields firmed from recent peaks. The antipodean currencies, the kiwi and the aussie, also held onto gains on the back of a weaker dollar.
STOCKS: European stocks moved lower following their peers in Asia. The pan European STOXX 600 and the blue-chip Euro STOXX 50 were down by 0.45% and 0.58% in the day at 1100 GMT, with the majority of their components being in the red. The Spanish IBEX 35 tumbled by 0.93%, the German DAX 30 declined by 0.46%, the French CAC 40 retreated by 0.30% and the British FTSE 100 decreased by 0.56%. US future stocks were pointing to a negative open.
COMMODITIES: Oil prices extended their losses for the second day amid a strengthening dollar. WTI crude fell by 0.67% to $65.12/barrel and Brent slipped by 0.20% to $69.31/barrel. Gold was trading 0.20% higher at $1344.20 per ounce.
Day ahead: Fed starts monetary policy meeting; Trump delivers the State of Union address
Looking ahead in the day, the economic calendar will see the release of the German preliminary CPI figures for the month of January at 1300 GMT, with the inflation gauge turning negative in monthly terms for the first time since May.
In the US, stats on consumer confidence will attract attention at 1300 GMT. Analysts project the index to remain robust, rising from 122 to 123.1 in January. The markets will also keep a close eye on any potential monetary policy news as the Fed starts its two-day policy meeting today. However, expectations are for the central bank to maintain interest rates unchanged at the end of the meeting on Wednesday. Note that, this will be Janet Yellen’s final meeting before Jerome Powell takes over the role as the new Fed chair. This could also be Yellen’s chance to express more upbeat views on the US economy.
In other events today, the US President, Donald Trump, will deliver his first State of the Union address probably calling Republicans and Democrats to unify ahead of a government spending bill vote on February 8. He is also expected to highlight the country’s upbeat economic performance and propose new legislative measures for the new year.
Bank of England Governor Mark Carney will be speaking before the House of Lords Economic Affairs Committee at 1530 GMT.
Japan will publish preliminary readings on industrial production for the month of December at 2350 GMT. According to forecasts, industrial output is anticipated to triple on a monthly basis.
In energy markets, API weekly report on US crude oil stocks will come into view at 2135 GMT.
The earnings season remains underway with pharma giant Pfizer being among companies releasing quarterly earnings on Tuesday.
 after Eurostat revised upwards GDP growth readings for the third quarter. Sterling managed to rebound to $1.4111 (+0.38%) after reaching a one-week low at 1.3979 during the Asian session. On the other hand, the dollar, stretched its downleg towards 108.52 versus the yen (-0.31%) and reversed yesterday's gains against a basket of major currencies, falling to 89.08 (-0.27%) as Treasury yields firmed from recent peaks. The antipodean currencies, the kiwi and the aussie, also held onto gains on the back of a weaker dollar. ){kind=link}