DailyFX European Market Wrap: Commodity Prices Rebound after Long Slide
European markets gain as commodity prices rise on back of hopes OPEC leaders will agree to a production cut.
The Emmanuel Macron victory in the French elections on Sunday night is still boosting the bourses but fizzling out in the currency market.
After hitting a six-month high on Sunday night, the common currency has now fallen back below the 1.09 level against the US dollar. ECB President Marion Draghi speaks in the Dutch Parliament on Wednesday and any dovish commentary could send the single-currency back towards the 1.08200 level.
In London miners are the biggest gainers and utilities are the biggest fallers thanks to Prime Minister Theresa May vowing to “end the injustice” of “rip-off energy prices” in Britain’s most popular newspaper – The Sun.
Germany reported its best ever month for imports and exports according to the latest batch of official data. With exports, worth €118.2bn in March, with imports hitting €92.9bn. But industrial production, which accounts for just under a third of the German economy, fell for the first time in four months in March.
Oil is gaining on hopes Saudi Arabia and Russia will ensure OPEC extends its cuts into 2018, the world’s largest crude producers said publicly this week they would consider prolonging their output reductions as we come to the end of the first 6-month period in which OPEC members have been on strict production limits. Brent slipped 25 cents to $49.35/brl.
--- Written by Katie Pilbeam, DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.