EU stopped its bond buying program

Daily Analysis - 14/12/2018

European markets ended lower


After more than 3 years the European Central Bank decided to terminate its bond-buying program after nearly four years this December. European administrators have broadly been negative regarding central bank's QE performance, showing that has a really unfavorable result on their net interest profit.

In the meantime, Germany's Metro Fell rapidly after the organization announced persistently challenging business conditions in Russia. Shares of the wholesale fell more than 6% on the news. UK's Antofagasta rose to the top of the European benchmark in morning trade ere giving up most of its profits to close at about 0.7% higher.

Gold steady

On Friday Gold prices were at regular levels and maintained its steady nature due to support that got by the skepticism about the Federal Reserve's policy vision for the 2019 but the famous yellow metal was on its course to record its largest hebdomadal drop in more than a month, while a stronger US Dollar weighed on the view. “The metal is down about 0.4 percent so far for the week. U.S. gold futures were down 0.1% at $1,245 per ounce while on Thursday, Spot gold was steady at $1,241.98 per ounce, prices dropped to their lowest level since the start of the month 7 at $1,239.82.


Asia shares ended lower

On Friday Shares in Asia finished weaker while China published a slew of economic data that failed to meet expectations, increasing concerns regarding headwinds challenging this giant economy.

In November China published that industrial production increased 5.4. Retail sales in the country grew 8.1% last month, beneath the 8.8% required and the softest movement since 2003, according to Reuters' records. Julian Evans the senior China economist at Capital Economics, stated in a note. "The latest data show an economy that is under pressure on both the external and domestic front, with policy efforts to shore up growth still falling short," The Shanghai composite closed the trading day 1.5% lower at 2,593.7405 points and the Shenzhen composite ended 2.46% lower at 1,327.4160 points


Oil prices fall while investors withdraw profits

On Friday oil dropped while investors withdraw them profits of more than 2% earned through the last trading session due to concerns that prices may fall amid weakening economic growth. But there are still expectations for producer supply cuts to maintain prices.

On Friday China, the world's largest crude importer, announced some of the slowest retail sales and industrial production extension in years for November, showing the dangers of the country's trade conflict with the United States.


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