(13 FEBRUARY 2018)DAILY MARKET BRIEF 2:World markets recover after big drop

(13 FEBRUARY 2018)DAILY MARKET BRIEF 2:World markets recover after big drop

13 February 2018, 14:00
Jiming Huang

Following recent market drop, we see extended improvement on markets for the current week. MSCI World Index increased by 1.22%, closing at 2’076 points, its highest rate hike since April 24th 2017, supported by Materials (+1.79%), IT (+1.67%), Energy (1.64%) and Industrials (1.20%) sectors. US markets extended Friday’s gains, with the Dow Jones Industrial Average surging at 24’601 (up 410 points or +1.70%), heading toward hourly resistance at 25’293 (February 7th 2018 high) while S&P500 2’656 (+1.39%) and Nasdaq 6’981 (+1.56%) have similar rising momentums. On European side, Euro Stoxx 50 surged at 3’368 points (+1.27%), slowly recovering from last week’s selling pressures (last week performance at -5.60%). German DAX and French CAC40 increased by +1.45% and 1.20% respectively. Asian markets follow the same path for the most part, Hong Kong Hang Seng currently quotes at 29’878 (+1.35%) while Korean Kospi and Australian S&P/ASX200 both increase at 2’395 (+0.41%) and 5’856 (+0.60%). Japanese markets remain lagers, as Nikkei 225 is down at 21’245 (-0.65%) following Shinzo Abe announcement on Friday to reappoint Kuroda for a second term as chief of the Bank of Japan, whose monetary policy consists of maintaining monetary policy loose for the time being, thus as a consequence reducing pressures on Japanese yen (USD/YEN at 108 or -0.62%).

US 10 years Treasury yields currently react inversely as they increased by +0.25% during yesterday’s closing and decreased by -0.32% this morning, currently valued at 2.8494 (US 2 years treasury up 0.40% since yesterday, estimated at 2.0815). 10 years US – German Bund spread remains at 1.32% (0.91% 6 months ago).

Bloomberg commodity index surged at 86.33 (+0.80%) and is currently given at 86.67 (+0.40%).

Looking forward to tomorrow’s January Consumer Price Index (expected at 2%) and Japan 4Q GDP, we believe these data are core as to determine how markets will react in the coming days.

By Vincent Mivelaz

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