Mixed morning for markets, Syriza still upsetting the establishment

Syriza are set to meet with Eurozone financial chief Dijsselbloem later today, who has already thrown doubt on the party’s ability to maintain their pre-election promises now they are in power.

With Greece appearing to delay the approval of new sanctions against Russia whilst finance minister Yanis Varoufakis claims the country was not consulted on the issue, the fractious relationship between Tspiras and the European establishment is finally starting to coalesce after the pleasantries at the start of the week.

Whilst the Eurozone saw big gains by yesterday afternoon, Friday has brought a mixed morning as German retail sales fell whilst there was strong CPI and GDP data from Spain, good consumer spending in France and a lowering of the unemployment rate in Italy. The big test will be the flash inflation figures for the entire region alongside the overall unemployment rate later this morning; with QE to officially arrive in March, these results will likely be a further indicator of the Eurozone’s long road to recovery.

After it looked like gold was in the midst of a return to form around the SNB decision/ECB QE confirmation, the metal has struggled with a fluctuating euro and a strong dollar since the Eurozone stimulus was announced, and fell to $1261.15 per ounce by Thursday’s close.

The FTSE saw a strong close to Tuesday but has seen these gains stall this morning; regardless of an increasing air of stability around copper and oil, the FTSE’s energy and mining stocks are still struggling to regain their footing after the big falls at the start of the week. Whilst Brent Crude has fluctuated between $48 and $49 for much of the past two weeks, it has resisted the precipitous falls that had been a regular occurrence in the last few months for its most prolonged period of (relative) stability in a long time. However, this stability doesn’t change the fact the commodity is too cheap for oil producers, and alongside copper which as seen losses for the past 3 days, commodities remain the dark cloud hanging over the FTSE.

A strong close for the US markets last night couldn’t help this morning’s futures, as the USA prepares itself for what is expected to be a disappointing advance GDP figure. Earnings season has continued to be frustrating for investors as two more US giants struggled to full satisfy traders: Google saw profit increase nearly 30% but still failed to match analysts’ revenue forecasts whilst Amazon saw a 15% rise in sales but a $25 million year on year drop in profits. With Apple’s strong earnings now a firm anomaly, the US has struggled to find solace in either its companies or its data, and looks set to limp to this week’s finish line.