A sharper edge to European Central Bank meeting minutes fired the euro forward today. The ECB note-taking from the 14 December made clear an end to quantitative easing is increasingly on the ECB to-do list. Approaching 4pm London time the euro was up almost +0.80% against the dollar at 1.2049 and more than +0.50% higher against sterling at 0.8897.
Needless to say a surging euro inflicted damage on European indices with the Dax seeing a -0.91% drop to 13,160 while in Paris the CAC 40 was down -0.44%.
US shares re-bounded from earlier falls today after China played down fears of a US debt purchase slow-down. Late afternoon London time Chevron and General Electric shares were both up more than +1.3% while the Dow Jones overall was up +0.30% at 25,447 points. The Nasdaq lifted +0.17% higher to 7,166 points.
Tonight the FTSE 100 traded higher again at 7,762.94 with Just Eat and easyJet rising 4.7% and +3.9%; M&S shares plunged more than -7% thanks to awful sales numbers released this morning though M&S' profit guidance remains intact for the moment.
- UK FTSE 100 7,762.94 +0.19%
- DAX 13,182.84 -0.75%
- CAC 40 5,487.32 -0.32%
- Euro Stoxx 600 397.01 -0.40%
- Dow 25,460.95 +0.36%
- S&P 500 2,754.17 +0.22%
- Nasdaq 7,168.21 +0.20%
- Nikkei 225 23,710.43 -0.33%
- Gold 1,321.70 +0.17%
- Oil WTI 64.40 +1.30%
Oil nears $70 a barrel
Oil neared $70 a barrel today as Brent crude lifted +0.66% to $69.66; WTI was up more than +1.25% to $64.37. The surge in the oil price is being driven by grim US winter weather and the continuation of OPEC supply cuts. Iranian tensions have also stirred the pot.
But a rising oil price brings its own problems for oil-rich nations, including the threat of upped shale production to combat it. Where does the balance lie? At $80 a barrel, possibly?
"You’re going to see a bunch of new crude supply coming on to the market this year from the US,” Michael Cohen, Barclays Head of Oil Markets Research, told Bloomberg. “So all in all, on a balanced basis, we don’t see the kind of shortage to bring us to $80 for a sustainable basis."