Market sentiment lower with Euro data in focus

Uncertainty over the US bond market and concerns that China could halt its purchase of US treasuries pulled US stocks and Asia lower last night and weighed on European markets on the open. The new year party has finally come to an end as the S&P and the Nasdaq posted their first losses in 2018. 

The general feeling is the market ha been waiting for the slip and whilst so far it is an isolated day, US futures are pointing to another downward session. The dip in sentient has been seen across the board, including in indices which have brought traders confidence over the past few session, such as the DAX.  

Germany experiences fast pace expansion in 6 years 

Not even the German economy growing at the fastest pace in 6 years was sufficient to boost the index. German GDP came in at 2.2% year on year, the best reading since 2012, ahead of the previous quarter. The reading confirms that the German economy remains the powerhouse of Europe. 

Even though the figure fell slightly short of the 2.4% expected, it is unlikely to dampen sentiment towards the German outlook in any serious manner, especially given the strength of recent economic data from Europe’s largest economy.  

Eurozone industrial production beats but fails to lift the euro 

Elsewhere, the eurozone posted strong industrial production data showing that the bloc experienced rapid growth in the sector. Over the past 12 months industrial production has increased 3.2% in a reminder of the strength of the eurozone’s economy. 

The sector enjoyed impressive growth thanks to broad global expansion in addition to domestic growth. Yet despite the encouraging data set the euro remained on a downward trajectory as it eyes up its next target of €1.19. 

ECB minutes on the horizon 

Investors are now awaiting the European Central Bank minutes from the latest monetary policy meeting. Investors will be scouring for any signs as to whether the ECB has any intention to start withdrawing stimulus policies earlier than planned. 

The changes are these market participants will be disappointed. Bets of early withdrawal are easing as we move towards the release which is weighing on sentiment for the euro. 

Bitcoin dives as South Korea prepares to Ban Cryptocurrency trading 

Bitcoin is having a less impressive 2018 than 2017. The cryptocurrency has experienced another drop in value pulling it to 13,995. The bitcoin market has been rattled by reports that Kora is preparing a bill to ban all crypto trading. This would represent a serious clampdown in one the the regions where bitcoin is most heavily traded. 

Any potential bill would still need to be passed by the National Assembly, but if it does then this could represent a serious loss of market to the cryptocurrencies. Bitcoin dropped by a heft 14% following the comments to a low of 12,800 – continuing to prove that Bitcoin’s volatility is going nowhere fast and highlighting the heavy fall the cryptocurrency has experienced since its peak in December of just shy of $20,000.