European Central Bank council member, Jens Weidmann warns against weakening the euro, causing the currency to advance.
European stocks retreated on Monday after European Central Bank governing council member (and Bundesbank president), Jens Weidmann warned against attempts to weaken the euro. After Weidemann’s remarks, the euro advanced and most European stock indices declined (NYSEARCA:VGK).
In France, INSEE reported that the nation’s manufacturing output advanced by 0.1 percent. However, on a quarterly basis, output declined 2.5 percent and on a year-over-year basis, manufacturing output dropped 3.9 percent (NYSEARCA:EWQ).
As of 11:17 EST, the Euro STOXX 50 Index declined 0.25 percent to 2,623 – staying above its 50-day moving average of 2,540. After breaking above its resistance level of 2,700 on January 21, the STOXX 50 continues to experience resistance at that level, which has been a barrier since the beginning of the year. Its Relative Strength Index is 42.40 (NYSEARCA:FEZ). The FTSE 100 Index advanced 0.15 percent to 6,272 (NYSEARCA:EWU). The German DAX Index dropped 0.22 percent to 7,634 (NYSEARCA:EWG). France’s CAC 40 Index advanced 0.09 percent to 3,652 (NYSEARCA:EWQ). Spain’s IBEX 35 Index sank 1.08 percent to 8,086 (NYSEARCA:EWP). Italy’s FTSE MIB Index fell 0.50 percent to 16,547. (NYSEARCA:EWI).
As of 11:33 EST, the euro advanced 0.39 percent against the dollar, trading at $1.3417 (NYSEARCA:FXE).
Spain’s ten-year bond yield advanced to 5.41 percent on Monday from Friday’s closing level of 5.33 percent. Spain’s two-year bond yield rose to 2.76 percent on Friday from Thursday’s closing level of 2.73 percent. (NYSEARCA:EWP).
Italy’s ten-year bond yield climbed to 4.64 percent on Friday from Thursday’s closing level of 4.58 percent (NYSEARCA:EWI).
On London’s ICE Futures Europe Exchange, April futures for Brent crude oil declined by 56 cents (0.48 percent) to $117.29/bbl. (NYSEARCA:BNO, NYSEARCA:USO). Natural Gas Futures Hit 5-year Low on Mild Weather Outlook
In Japan, the stock market was closed for holiday (NYSEARCA:EWJ). Had it been open, stocks would have surged because the yen continued to decline. As of 1:00 EST, the yen was trading at 93.44 per American dollar (NYSEARCA:FXY). It is now widely acknowledged that the movement of the Nikkei 225 Stock Average is influenced, almost exclusively, by the exchange rate of the yen.
In China, the major stock exchanges were closed on Monday as part of the Chinese New Year celebration (NYSEARCA:FXI), (NYSEARCA:HSI).
American stock index futures trading was in positive territory ahead of Monday’s opening bell as the momentum of a nearly-complete earnings season fueled investor enthusiasm. The March 13 Dow Jones Industrials future crept upward by 0.08 percent to 13,937 as of 9:13 EST. The March 13 S&P 500 future advanced 0.07 percent to 1,513 (NYSEARCA:SPY). The March 13 Nasdaq 100 future rose 0.11 percent to 2,575.
Bottom line: Most major European stock indices retreated on Monday after ECB governing council member and Bundesbank president, Jens Weidman warned against attempts to weaken the euro, causing the currency to advance against the dollar.