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Top 5 Things to Know In the Market on Monday

Published 25/04/2016, 10:55
Updated 25/04/2016, 11:08
© Reuters.  5 key factors for the markets on Monday

© Reuters. 5 key factors for the markets on Monday

Here are the top five things you need to know in financial markets on Monday, April 25:

1. Pound pares gains after Obama-based boost

GBP/USD moved back from a five-and-a-half week high reached after U.S. President Barack Obama warned over the weekend that Britain would be at the “back of the queue” to arrange a trade deal with the U.S. in the event of a British exit from the European Union or Brexit.

Betting odds had moved sharply in favor of the U.K. remaining in the 28-member block following Obama’s warning.

2. Investors take profits in oil after three-week rally

Oil prices fell on Monday as traders took profits after a strong rally last week on the back of optimism that a global supply glut may start to ease in the coming months.

On Friday, oil services company Baker Hughes said the number of U.S. oil drilling rigs, viewed as a proxy for activity in the sector, fell for the fifth straight week to the lowest level since November 2009.

U.S. crude oil futures dropped 1.35% to $43.14 at 9:51AM GMT, or 5:51AM ET, while Brent oil traded down 1.18% to $44.54.

3. German business confidence misses

German research institute Ifo said its business climate index unexpectedly ticked down in April, although confidence remained near the 14-month highs registered in March.

Both the business expectations index, which measures attitudes toward business prospects over the next six months, and the current assessment index also missed consensus.

“The mood in the economy is good, but not euphoric,” Ifo economist Klaus Wohlrabe commented on the monthly report.

4. U.S. new home sales ahead with market focus later in the week

In a light calendar day, U.S. new home sales will be the only major economic data point in the remainder of the session as investors focused on the agenda for later in the week.

Central banks will be in market participants’ sights with the conclusion of the Federal Reserve’s policy meeting on Wednesday and the Bank of Japan expected to cut its forecasts for growth and inflation when it makes its monetary policy decision on Thursday.

First quarter growth will also be as the U.S., U.K., euro zone or Canada release gross domestic product data throughout the week.

Also of note for the euro area, the European Central Bank will have the chance to digest preliminary inflation data for April on Friday.

5. Global stocks decline at the start of a busy week

In Asia, the Nikkei 225 closed with losses of 0.76%, while Dow Jones Shanghai fell 0.50%. S&P/ASX All Australian 200 was closed for the Anzac day holiday.

At 9:53AM GMT, or 5:53AM ET, European stocks markets moved lower with the European benchmark Euro Stoxx 50 trading down 0.68%, the DAX losing 0.90%, the CAC 40 falling 0.54% and London's FTSE 100 dropping 0.36%.

U.S. futures also tallied slight losses. Specifically, at 9:54AM GMT, or 5:54AM ET, the blue-chip Dow futures slipped 0.17%, S&P 500 futures edged down 0.13% and the Nasdaq 100 futures gave up 0.14%.

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