European Open: The euro perks up ahead of German ZEW report

Asian Indices:

Australia's ASX 200 index fell by -81.3 points (-1.14%) and currently trades at 7,039.40
Japan's Nikkei 225 index has risen by -144.41 points (0.54%) and currently trades at 26,178.01
Hong Kong's Hang Seng index has fallen by -442.52 points (-2.21%) and currently trades at 19,559.44
China's A50 Index has risen by 76.32 points (0.59%) and currently trades at 13,018.85

UK and Europe:

UK's FTSE 100 futures are currently up 1 points (0.01%), the cash market is currently estimated to open at 7,217.58
Euro STOXX 50 futures are currently up 7 points (0.2%), the cash market is currently estimated to open at 3,533.86
Germany's DAX futures are currently up 41 points (0.31%), the cash market is currently estimated to open at 13,421.67

US Futures:

DJI futures are currently up 167 points (0.52%)
S&P 500 futures are currently up 138.5 points (1.14%)
Nasdaq 100 futures are currently up 26.5 points (0.66%)

Asian markets continued lower for a second consecutive day following a turbulent session on Wall Street. The Hang Seng and HSCE index led the way lower, after they played catch-up following a 3-day weekend. The ASX 200 fell over -1% for a third consecutive day, a sequence not seen since June 2020.

Yet futures markets for Europe and the US are pointing to a higher open. We also saw gold, AUD/JPY and NZD/JPY bounce from their lows as markets retraced against yesterday’s moved. So whilst there are the early signs of a ‘turnaround Tuesday’ we really need to see how cash markets behave after the open to better gauge the appetite for risk in today’s session.

Euro in focus ahead of ZEW data

The euro has been gaining bullish interest against several majors following hawkish comments from ECB members over the past week. Whether that will be enough to see a hike in July remains to be seen (as Lagarde is seemingly unconvinced). But it has helped the euro build a base above 1.0500 and move to the midway point of its 1.0500 - 1.0640 range. ZEW economic data is scheduled for 10:00 and given recent hawkish comments from ECB members, perhaps it could help with another leg higher for the euro should it beat dismal expectations. Prices are above the weekly pivot point and broken out of a small triangle, which brings the 1.0600 highs into focus for bulls.

Euro explained – a guide to the euro

FTSE: Market Internals

FTSE 350: 4017.43 (-2.32%) 09 May 2022

28 (8.00%) stocks advanced and 316 (90.29%) declined
5 stocks rose to a new 52-week high, 88 fell to new lows
20.29% of stocks closed above their 200-day average
100% of stocks closed above their 50-day average
6% of stocks closed above their 20-day average

Outperformers:

+ 4.76% - QinetiQ Group PLC (QQ.L)
+ 3.68% - NCC Group PLC (NCCG.L)
+ 2.70% - Beazley PLC (BEZG.L)

Underperformers:

-12.02% - Chrysalis Investments Ltd (CHRY.L)
-11.62% - Tullow Oil PLC (TLW.L)
-10.18% - Ferrexpo PLC (FXPO.L)

Up Next (Times in GMT)

How to trade with City Index

You can easily trade with City Index by using these four easy steps:

Open an account, or log in if you’re already a customer

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
Search for the company you want to trade in our award-winning platform
Choose your position and size, and your stop and limit levels
Place the trade

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.