What you need to know before the US open – 17/02
The dollar’s dropped to six-week lows today, in the wake of weaker-than-expected US data.
The fall in January manufacturing output, out last Friday, has seen some investors re-assess their expectations for the speed at which the Fed will taper.
It edged up against the yen after data showed the Japanese economy grew just 0.3 per cent in the fourth quarter, after forecasts of 0.7 per cent growth.
Meanwhile, prospects of a new government in Italy have seen government bond rally, with yields hitting a 2006 low. Spanish and Portugese bonds followed suit.
Corporate news
Chinese jewellery retailer Goldleaf Jewelry has announced plans to buy US oil and gas firm ERG Resources for at least $665m.
The Beijing-based company has gold mining investments, and said it’s looking to become a “cross-border, trans-market international resources enterprise”.
Goldleaf shares are up almost ten per cent.
In the UK
The FTSE jumped this morning, driven higher by positive Chinese lending data, the political events in Italy and optimism around RSA Insurance.
The embattled group’s shares gained over two per cent on news that it’ll raise as much as £250m from an emergency shares sales, as reported by the FT.
Developer Hammerson is still leading the FTSE 100, up almost four per cent, after reporting robust results on the back of a surge in demand from retailers.
In Europe
In Italy, Matteo Renzi has received the mandate from President Giorgio Napolitano to form Italy’s next coalition government.
And ECB president Draghi has said that he may act to combat the stubbornly low inflation in the euro area as early as next month.
This morning, data showed that Greece saw its 11th month of deflation in January.