Afternoon Market Update – 13/02/2017 – by Jazz Singh
February 13, 2017Global stocks have continued to rally as pessimism over the reflation trade is brushed aside. This upside bias in the equity space comes after Trump reinstated his pledge to change his nation’s taxation structure. US equity futures are pointing higher across the board; meanwhile in Europe we see the Stoxx Europe 600 adding 0.5 percent while the DAX has rallied over 100 pips this morning. This confidence in the stock market has not translated into the greenback which trades flat for the session. The Japanese yen has declined over 0.5 percent today, extending the selloff seen last week. Looking to the commodity complex, crude oil has snapped back some of its gains seen at the end of last week; WTI currently trades just below the $54 handle, a decline of 0.4 percent for the session. The biggest gainer is iron ore, up a near 5 percent today. The raw material is at its highest level for over 2 years, buoyed by the prospect of Trump’s infrastructure spending. Another quiet day on the data front, as we anticipate GDP data from the Eurozone and Janet Yellen’s speech tomorrow.
