Week in Re­view: An­other roller­coaster week for mar­kets

Financial Mirror (Cyprus) - - FRONT PAGE -

par­ties and re­sult­ing in a ref­er­en­dum on the EU sent the Euro tum­bling to a 10-month low. It was in­ter­est­ing how in­vestors’ fears over Italy’s po­lit­i­cal tur­moil started to ease mid-week on signs that a snap elec­tion may be avoided. The Euro was thrown a life­line this week, af­ter a last-minute coali­tion agree­ment be­tween Italy’s two anti-es­tab­lish­ment par­ties eased ten­sions.

Away from the Euro, global sen­ti­ment was dealt a blow af­ter the United States im­posed steel and alu­minium tar­iffs on Mex­ico, Canada and the EU. With Canada and Mex­ico im­me­di­ately re­tal­i­at­ing against the US tar­iffs and the EU threat­en­ing a sim­i­lar re­sponse, fears could in­ten­sify over a global trade war.

In the com­modi­ties arena, Gold con­tin­ues to hunt for a fresh direc­tional cat­a­lyst, while Oil re­mains some­what pres­sured by ex­pec­ta­tions of OPEC boost­ing out­put.

The ma­jor risk event re­mains the pend­ing US jobs re­port which could shape rate hike ex­pec­ta­tions beyond June. A solid NFP print, cou­pled with signs of ac­cel­er­at­ing wage growth, may heighten spec­u­la­tion of higher US in­ter­est rates this year.

With the num­ber of high tier eco­nomic re­leases lim­ited in the up­com­ing trad­ing week, global stocks and cur­rency mar­kets are likely to be driven by trade de­vel­op­ments and po­lit­i­cal de­vel­op­ments in Europe.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.