Originally published by Rivkin Securities
Major European indices closed higher on Friday with the FTSE 100, DAX and CAC 40 all closing higher. In the US, on the other hand, the two major indices closed flat after a low volatility trading session. The Volatility Index (VIX) has settled down around 19.4, still higher than January’s levels but significantly down from the spikes into the 30’s that occurred during the market turmoil two weeks ago. S&P/ASX 200 futures are down 7 points this morning.
Oil prices have stabilised, and bounced a little, after fairly steep declines from the US$65+ levels of late January. While inventories have climbed the past two weeks, the absolute levels are still quite close to the five-year average. WTI is now trading at US$61.68 per barrel. Gold fell slightly on Friday but is still holding around $1,350 per ounce. This is still near multi-year highs, however, as a weak US dollar has helped support the gold price.
This week is fairly light for economic news although we get both the RBA’s and FOMC’s meeting minutes from their most recent monetary policy meetings. The FOMC meeting minutes will be studied carefully to determine whether a March rate hike is still on the cards.
Data Releases:
- No Significant Data