Stocks fall as S&P and the Dow both lose .5% to 2,107 and 18,203 respectively. With no significant economic data or news driving the markets today, it’s likely that a lot of investors took profits with markets at record highs. Markets are quiet ahead of unemployment report on Friday which could give clues on when the Fed will raise rates. Investors are also looking for more details of the ECB’s purchase program on Thursday. Eurozone producer prices fell .9% month on month in January, which suggests that eurozone deflation could persist for longer than expected. The euro depreciates slightly against the dollar to $1.1173. The VIX rises to 13.86 as the dollar falls slightly against a basket of weighted peers. The U.S. 10 year yield increases 4 basis points to 2.12% and the German comparable stays flat at .36%.
Ivan Glasenberg at Glencore predicts that his company will have a strong year with regards to their oil trading operations if market trends continue this year. Glasenberg predicts that Glencore will be able to bounce back following a year which hurt the profits of one of the worlds largest commodities traders. The volatility in the current environment in a wide variety of commodities are providing traders with the most favorable conditions in years.
Ukraine raises benchmark interest rates to by 10.5 percentage points to 30% in order to stop inflation and strengthen its currency. The Ukrainian hyrvnia has depreciated 40% since the start of this year, following a 40% drop in 2014. The currency has weakened following large-scale capital outflows and a lack of foreign reserves at the central bank. The hyrvnia has strengthen a little to 24.25 per dollar from 33.75 last week, and the central bank is targeting a range of 20-22 per dollar.
Many investment banks in Europe are scaling down, which leaves European companies reliant on foreign banks to provide access to capital markets. RBS is working on a drastic restructuring project which will involve huge job cuts to its investment banking division in the U.S. and Asia. CEO of Barclays says he is losing patience in the recovery for their investment bank, which dragged down performance from their other divisions last year.