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24 Hour Market News

European Closing Report

October 12, 2017

European cash equity markets are mixed at the closing bell (FTSE +0.3%, DAX +0.1%, IBEX -0.6%). The German DAX did cross above 13,000 for the first time this afternoon while the FTSE outperformed, boosted by a weaker pound. Sterling suffered after a press conference with UK Brexit Minister Davis and his EU counterpart Barnier offered little indication that any substantial progress has been made in recent negotiations. The US Dollar rallied meanwhile after US producer prices saw a notable jump in September – PPI rose +2.6% year-on-year as expected while the core rate jumped +2.2% (f/c. +2.0%). US initial jobless claims also fell to 243K (f/c. 252K) from 258K as the impact from the recent hurricanes continue to filter out. Central bank speakers have been in abundance with ECB Chief Economist Praet calling for the Governing Council to remain patient and persistent for inflationary pressures to show through convincingly in the data. Fed Governor Powell meanwhile said monetary policy normalization has been and should continue to be gradual, as long as the U.S. economy evolves roughly as expected. ECB President Mario Draghi is currently speaking on a panel with Fed Governor Brainard. Elsewhere, oil prices remain lower with US crude futures losing just over two-percent at the lows although did see a modest bid after the DoE reported a larger than expected drawdown in US crude inventories. Ahead, more central bank speak with the BoE’s Haldane plus the ECB’s Coeure and Lautenschlaeger due while the US Treasury also looks to sell $12.0 Bln of reopened 30-year bonds.

For a more detailed report, please visit the ‘Market Research’ section.