Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the markets:
Main Trading Event Of The Day: EUR CPI y/y @ 10.00 GMT
Weekly Event Focus: This week’s German Zew Economic Sentiment report is expected to be the culmination of a series of positive news for the Eurozone and Germany. Growth in the Eurozone exceeded expectations reaching 0.3-0.4 percent in the first quarter. The German economy seems to be carrying the rest of the Eurozone with the strongest rate of job creation in more than two years. This confidence was also reflected in Germany’s composite PMI which reached a 31-month high. This recent data provides encouraging news ahead of the German Zew report and should trigger a rally in the Euro, if the optimism continues.
WHAT WE’RE WATCHING TODAY
Asian Shares Mixed Amid Rising Ukraine Worries
Stocks in Japan and Hong Kong slipped as investors awaited the West’s response to Crimea’s vote to break away from Ukraine and join Russia. Stock markets across Asia Pacific were mixed after the referendum on Sunday in Crimea, amid rising worries over another possible military incursion into Ukraine by Russia. Tensions have weighed on global markets in recent weeks with the possibility of military intervension leading to more risk-averse trading. The yen, which money managers typically buy when global political tensions rise, touched 101.15 per dollar, the strongest the Japanese currency has been since Feb. 5. The euro was at $1.3906, largely unchanged from $1.3912. Some analysts expect the West’s threatened sanctions against Russia would mean financial assets to flow into euro-denominated assets. Japan’s Nikkei lost 0.4%, while Australia’s benchmark S&P ASX 200 shed 0.2% and South Korea’s Kospi gained less than 0.2%. In China, the Hang Seng Index in Hong Kong lost 0.4% and the Shanghai Composite was flat. Stocks had already been uneasy ahead of the Sunday vote, with the S&P 500 index last week logging its biggest weekly loss since January. Headlines are expected to continue to move markets throughout the week according to analysts.
Gold Near Six-Month High On Safe-Haven Bids
Gold was trading near its highest level in over six months on Monday on weaker equities and as Crimea voted to join Russia, heightening tensions between Moscow and the West. Gold has gained 15 percent this year as mounting geopolitical tensions and fears over slowing economic growth spurred demand for the metal seen as a safe-haven asset. Gold was trading at $1,381.34 today after earlier hitting $1,391.76, its highest since Sept. 9. The political environment regarding Ukraine is very supportive of gold prices and it is likely to continue for a while with some analysts anticipating that prices to go all the way to $1,500 in the next few weeks.
Google Working On Electronic Tattoos
Google has announced that it is working on electronic tattoos that will find themselves on the market very soon. The idea behind this new concept is to create an electronic device, involving sensors which is thinner than a sheet of paper and as flexible as a plaster that can stick to the skin. The core benefit is that they become part of the body in a non-invasive, painless and relatively inexpensive way. In addition to sensors, the electronics package can contain wireless networking capability, so they can convey sensor data easily and also be controlled from a remote computer or smartphone. Researchers envision all kinds of medical applications for electronic tattoos, for example, extremely precise thermometers that can track tiny fluctuations in body temperature and set off alarms when the level goes above or below a set threshold. But there are other applications for this idea beyond the doctor’s office. One will be smart clothing; electronics built into clothes. Google’s Android chief, Sundar Pichai used the example of a “smart jacket” when talking about the possibilities of the wearables software development kit he was announcing. The real revolution is flexible electronics - once it arrives, it’s really going to stick!
That sums up today’s highlights! We hope you have a profitable day on the markets.
