After coming under a significant selling pressure after a major technical level (100DMA DAX) triggered sell stops earlier on in the session, stocks in Europe have staged a decent bounce but remain in firm negative territory. On the sector break down, basic materials and oil & gas sectors underperformed yet again as the energy complex resumed its downward trend after staging a technical bounce yesterday. The cautious sentiment saw Bunds trend higher, with the uptrend accelerating after the latest supply from the German central bank was absorbed with a healthy cover ratio and at a record low yield.
There was little in terms of EU related macroeconomic commentary, but the release of the most recent BoE policy meeting minutes revealed that the MPC voted 6-3 to keep the APF unchanged. Broad based GBP weakness was evident following the release, which also coincided with the release of less than impressive UK jobs report. Going forward, market participants will get to digest the release of the latest weekly DoE report, as well as earnings from Bank of America and American Express.
Print 10:43, 17 Apr 2013 - Market Analysis - Source: RANsquawk
RANsquawk provides audio news and commentary for over 15,000 professional traders and brokers worldwide. Services include: