Euro Area Industrial Production Beats Expectations

News Event

From Trading Economics: Industrial production in the Euro Area increased 1.2 percent year-on-year in September of 2016, following an upwardly revised 2.2 percent gain in August and better than market expectations of a 1 percent rise. On a monthly basis, production declined 0.8 percent, compared to forecasts of a 1 percent drop and mostly due to a fall in durable goods. Industrial Production in the Euro Area averaged 0.82 percent from 1991 until 2016, reaching an all time high of 9.10 percent in April of 2010 and a record low of -21.60 percent in April of 2009. Industrial Production in the Euro Area is reported by the Eurostat.

Market Opening Wrap

In Asian Equity Markets Japanese stocks rose on Monday as a weak yen bolstered exporter stocks, with the Nikkei rising 1.7 percent to 17,672.62, the highest closing level since Feb 2. The broader Topix rose 1.6 percent to 1,400.00, while the JPX-Nikkei Index 400 also added 1.6 percent to 12,583.05. MSCI's broadest index of Asia-Pacific stocks outside Japan was off 1 percent having suffered its lowest close since mid-July on Friday. Indonesia led the losses with a fall of 2.6 percent. The Shanghai Composite Index gained 0.21 percent after a suite of industrial output, retail sales and fixed asset investment data. Australian index, S&P/ASX 200, lost 0.47 percent.

In Currency Markets the dollar rose to a nine-month high against a basket of major currencies on Monday, riding climbing U.S. yields and seen to be at the cusp of a renewed bull phase following Donald Trump's U.S. election win. The dollar was up 0.8 percent at 107.500 yen, having risen to 107.595, its highest since June 7.  The euro was down 0.6 percent at $1.0793 after touching $1.0773, its lowest since early January. Against the Swiss franc the dollar gained 0.4 percent to 0.9914 franc. The Australian dollar was little changed at $0.7548 after seeing a one-month low of $0.7524. The New Zealand dollar was down 0.5 percent at $0.7092. The dollar index was up 0.4 percent at 99.471 after touching 99.680, its highest since Jan. 29.

In Commodities Markets oil prices were little changed on Monday near multi-month lows, dragged down by worries about oversupply as OPEC saw record output last month and as the U.S. rig count rose again. London Brent crude for January delivery was trading down 3 cents at $44.72 a barrel, after settling down $1.09 on Friday. NYMEX crude for December delivery was down 8 cents at $43.33 a barrel. Spot gold was last down 0.1 percent at $1,224.68 an ounce. The metal fell 1 percent to $1,212.26 an ounce earlier in the session - its lowest since June 3. Silver rose 0.14 percent to $17.36 an ounce. Earlier in the session, it touched its worst since June 9 at $17.00. Platinum was up 0.7 percent at $677.40.

In US Equity Markets  the Dow Jones industrial average ended at a record closing high on Friday, capping off its best week since 2011 after Donald Trump's unexpected victory in the U.S. presidential election. The Dow Jones industrial average climbed 0.21 percent to end the week at 18,847.66 and the Nasdaq Composite  added 0.54 percent to 5,237.11. The S&P 500 declined 0.14 percent to 2,164.45. Nvidia  jumped 30 percent after the graphic chip maker reported its biggest quarterly revenue growth in more than six years. Walt Disney rose 2.86 percent after its executives promised earnings growth for the next two years. Barclays also upgraded the media company's stock to "equal weight" from "underweight".

In Bond Markets Japanese government bonds edged down on Monday, taking their cue from U.S. Treasuries, with benchmark 10-year JGB futures and cash bonds creeping down to their lowest levels since Sept. 21. The benchmark 10-year JGB yield added 1.5 basis point (bp) to minus 0.020 percent, while benchmark 10-year JGB futures were down 0.19 point at 151.13 in afternoon trade. In the superlong zone, the 20-year JGB yield added 1 bp to 0.405 percent, while the 30-year yield rose 1.5 bps to 0.540 percent.

Source: Institute of Trading and Portfolio Management