Early Euro Data Positive – Stocks Set to Open Lower on Yellen Comments
Early economic data out of Europe today was more positive than expected, with Dutch retail sales slam dunking a 3.3% gain for December after a previous 1.8% contraction.
Later in the day, we’ll see more Dutch data, with GDP growth rate YoY and QoQ expected to come in at +1.2% and +0.3% respectively.
What’s more likely to be weighing on European traders minds today, however, are the comments made by Fed Chair Jannet Yellen yesterday, causing confusion about what said comments means for the rate-hike timeline, with the Fed boss hinting that she is concerned about the overall global economy.
Rumours abound that Yellen may impose negative interest rates, a move which many are not even sure in legal, let alone sensible monetary policy.
Futures all point to lower opens for the FTSE, DAX AND CAC, Europe’s three main indexes, as investors begin to digest the comments and form a strategy going forward.
It’s likely to be a sell at the open across Europe today. As the Fed creates uncertainty and Asia tumbles, it’s difficult to see how anything else could happen.
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