Tag Archives: Dow Jones

USD Off To Slower Start In August

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

WHAT WE’RE WATCHING TODAY

Dollar Gets Off To Slower Start In August

The U.S. dollar got off to a cooler start today after experiencing its biggest one-day fall in almost a month after a series of economic data led markets to push back expectations for the start of the Federal Reserve’s rate-tightening cycle. U.S. jobs growth slowed in July, the unemployment rate unexpectedly edged up and inflation was restrained, a mix of figures that may indicate the Fed will keep interest rates low for longer. The dollar index was last at 81.321 .DXY having retreated from a 10 1/2 month peak of 81.573. It had fallen 0.2 percent on Friday, a modest decline but still the biggest one-day fall in over three weeks. The index had rallied more than 2 percent in July as improving U.S. data convinced markets that an interest rate rise could be less than 12 months away. That allowed the euro to push back above $1.3400 EUR and off an eight month trough of $1.3366 plumbed last week. Against the yen, the dollar recoiled to 102.56 JPY, having stretched to a near four-month high of 103.15.

S&P 500 Sees Biggest Weekly Decline Since 2012

Data showing U.S. job growth eased off in July and the unemployment rate unexpectedly rose suggests that the Federal Reserve may keep interest rates low for a while. The jobs growth, which came in below economists’ forecasts, relieved some investors worried about how soon the Fed could increase interest rates after data on Thursday showed U.S. labour costs recorded their biggest gain in more than 5 1/2 years in the second quarter. Seven of the 10 S&P 500 sectors ended lower with S&P financials among sectors with the biggest losses. The Dow Jones industrial average fell 69.93 points to 16,493.37, the S&P 500 lost 5.52 points to 1,925.15 and the Nasdaq Composite dropped 17.13 points to 4,352.64. For the week, the S&P 500 fell 2.7 percent, its biggest weekly percentage loss since the week ending June 1, 2012. The Dow ended down 2.8 percent for the week, while the Nasdaq fell 2.2 percent. The Dow’s losses pulled it deeper into negative territory and is consequently down 0.5 percent for the year to date.

WTI Trades Near Six-Month Low Before Economic Data

West Texas Intermediate crude traded near the lowest price in six months before data that will signal the strength of the economy in the U.S., the world’s biggest oil consumer. Brent was steady in London. Futures were little changed in New York after capping the biggest weekly decline in seven months on Aug. 1. The Markit Economics purchasing managers index for U.S. services is due tomorrow, while factory order data is also scheduled this week. WTI for September delivery was at $98 a barrel in electronic trading on the New York Mercantile Exchange, up 12 cents. The contract slid 0.3 percent to $97.88 on Aug. 1, the lowest close since Feb. 6. The volume of all futures traded was about 1.3 percent above the 100-day average. Prices are down 0.5 percent this year. Brent for September settlement rose 21 cents to $105.05 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $7.08 to WTI. It closed at $6.96 on Aug. 1.

That sums up today’s highlights! We hope you have a profitable day on the markets.

Apple Earnings: Investors Look For Signs Of What’s To Come

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: USD CPI @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Apple Earnings: Investors Look For Signs Of What’s To Come

With Apple Inc due to report its fiscal third-quarter earnings today, investors will be looking for hints on new market categories and launch dates that the company may be working on. In particular, investors will be specifically interested to see if Apple’s CEO Tim Cook relays any news about a possible smart-watch. Along with the company’s foray into wearables, investors will also be listening for clues about when the company plans to launch the iPhone 6 which would boost Apple’s gross margins. Product timing issues could, however, skew guidance thus sending shares lower. If this happens, investors should use that opportunity to look at buying shares and take advantage of buying on the weakness. The company is expected to post earnings of $1.23 per share on revenue of $37.98 billion in revenue.

Last quarter, Apple reported iPhones sales of 43.7 million, well ahead of the 37 million to 38 million iPhones analysts had expected. Since then the company has seen its share price soar more than 25 percent. Strong earnings results from some of Apple’s suppliers may mean the tech giant could post a positive surprise. For example, Skyworks posted 35 percent revenue growth year over year when it reported earnings last week and that could translate to good news for Apple.

WTI Rises for Second Day; Brent Gains

West Texas Intermediate rose for a second day before stockpile data that may signal the strength of fuel demand in the U.S., the world’s biggest oil consumer. Brent also increased in London. Futures climbed as much as 0.5 percent in New York. Crude inventories probably shrank by 2.8 million barrels last week, according to a Bloomberg News survey before a report from the Energy Information Administration tomorrow. WTI for August delivery, which expires today, gained as much as 56 cents to $105.15 a barrel in electronic trading on the New York Mercantile Exchange. The contract closed at $104.59 yesterday, the highest level since July 1. September crude was up 45 cents at $103.31 at 12:14 p.m. Singapore time. The volume of all futures traded was about 77 percent above the 100-day average. Front-month prices have advanced 6.8 percent this year.

U.S. Stocks Finish Slightly Lower

U.S. stocks slipped yesterday as investors remained cautious about instability in Ukraine and Gaza, though the three major indexes ended well off their lows, a sign that some appetite for riskier assets remained. The S&P 500 fell as much as 0.6 percent, though it recovered most of those losses and closed above its 14-day moving average, suggesting buyers were using weakness to come back into the market. However, nine of the 10 primary S&P 500 sector indexes fell. The S&P energy sector index represented the only positive group, up 0.2 percent. Violence has escalated in the Gaza Strip and while the impact to the U.S. economy is seen as minimal, investors are concerned about the fallout from an extended period of increased violence and the prospect that it could spread to other parts of the Middle East. Market participants also kept watch on the uncertain situation in Ukraine. The Dow Jones industrial average fell 48.45 points or 0.28 percent, to end at 17,051.73. The S&P 500 declined 4.59 points or 0.23 percent, to finish at 1,973.63. The Nasdaq Composite dropped 7.44 points or 0.17 percent, to close at 4,424.70.

That sums up today’s highlights! Don’t forget to keep any eye for updates on today’s tradable events including Apple earnings via our Facebook, Twitter, Google+ and LinkedIn. We hope you have a profitable day on the markets.

Wall Street Ends Down After Record High

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: USD Core Durable Goods Orders @ 12.30

WHAT WE’RE WATCHING TODAY

Wall Street Ends Down After Record High

U.S. stocks ended lower on Tuesday as concerns about Iraq drove profit-taking after encouraging economic data which had earlier driven shares to a record high. U.S. Treasuries prices gained as investors turned away from equities. The S&P 500 closed down more than half a percent for its sharpest loss since June 12, after setting a fourth record high in five sessions. The stock market was boosted earlier by data showing stronger-than-expected U.S. consumer confidence and an 18.6 percent surge in sales of new homes in May. But shares reversed course and fell more sharply toward the close on concerns about an escalation in the Iraq conflict. The Dow Jones industrial average fell 119.13 points to 16,818.13, the S&P 500 lost 12.63 points to 1,949.98, and the Nasdaq Composite dropped 18.321 points to 4,350.355.

GBP Falls After Less Hawkish BOE

The British pound dropped on Wednesday after comments from Bank of England governor, Mark Carney, cooled expectations for an interest rate hike this year. Surprisingly less hawkish comments from BoE Governor Mark Carney saw the pound dip to a near one-week low of $1.6966, pulling away from a 5 1/2 year peak of $1.7064 set last Wednesday. Carney said Britain’s economy still has plenty of slack to work through and that financial markets underestimate how much uncertainty there is in the economy. The impression he left was a dovish one and left market watchers trying hard to reconcile with his abrupt and hawkish change of policy signalling at a speech earlier this month.

When The World Cup Is On, Stock Markets Go Quiet

With the World Cup well underway, it may come as no surprise that workers everywhere are paying more attention to the games than to their jobs. One way of measuring the global epidemic of distraction is to look at plunges in stock market trading volumes. The European Central Bank analysed data from the 2010 World Cup showing significant drops in trading during all games. The effect was especially pronounced when the traders’ own country was on the field.

Source: Bloomberg

That sums up today’s highlights! Remember to stay in touch via our social media channels for all the latest market news of the day. We hope you have a profitable day on the markets.

Dollar Headed for Best Week Versus Yen Since April Before Payrolls

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: U.S. Non-Farm Payrolls @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Dollar Headed for Best Week Versus Yen Since April Before Payrolls

The dollar headed for its biggest weekly gain since April versus the yen ahead of today’s U.S. Non-Farm Payrolls report which is expected to show that employers added more than 200,000 jobs for a fourth month as the labour market recovers. The euro was little changed today after jumping the most since March versus the dollar yesterday as the market rejected the European Central Bank’s unprecedented effort to weaken the single currency. The dollar was little changed at 102.34 yen having gained 0.6 percent this week, the most since the period ended April 18. The euro traded at $1.3657 after jumping 0.5 percent yesterday, the most since March 6. The Euro was little changed at 139.75 yen.

Meanwhile, the Dow and the S&P 500 ended at a new record on Thursday after the European Central Bank cut rates to record lows and pledged to do more if needed to fight off the risk of deflation. Investors are now focused on today’s U.S. payrolls report for May. It is expected to show job growth slowed last month and the unemployment rate ticked up, but not by enough to upset the view that the economy is bouncing back. The number of Americans filing new claims for unemployment benefits rose last week, but the underlying trend continued to point to a firming labor market.

Draghi Fights Deflation With Banks Rather Than Bonds

The banking system rather than the bond market is Marion Draghi’s chosen route as his best ally, for now at least, in the fight against deflation. The European Central Bank yesterday cut interest rates to unprecedented lows and its president unveiled measures to beef up lending for banks in a bid to revive inflation hovering close to a quarter of his target. With much hinging on whether banks will boost credit themselves, failure to spur consumer prices will leave Draghi with little option but to enter the uncharted terrain of U.S.-style bond buying. Some executives have more hope than confidence that Draghi’s current plan will work. The negative deposit rate is aimed at stemming unwarranted increases in money-market rates and weakening the euro, yet could backfire if banks retrench further or pass the cost on to customers. A risk of the new lending venture is that banks may pass on the money only to find companies can’t repay it which may mean that Draghi ultimately has no choice but to engage fully with QE.

Higher Coffee Prices Hit Consumers

The moment to hoard cheap coffee beans has passed. The price of coffee futures peaked in April and the higher commodity costs are now hitting consumers at the supermarkets. Coffee prices spiked after drought hit the crop in Brazil, the world’s largest grower, even though rains have recently eased some of the damage. Changes in the futures market don’t tend to show up in retail prices for months. In February, Arabica futures rallied by more than 20 percent to start the year. After reaching a high of $2.12 per pound in April, coffee futures prices have since cooled somewhat so there’s hope yet that retail prices will fall again, in time.

That sums up today’s highlights! We hope you have a profitable day on the markets.

Dollar Rises As This Week Could Be Crunch-Time For The ECB

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: EUR CPI Flash Estimate @ 09.00 GMT

WHAT WE’RE WATCHING TODAY

Dollar Rises As This Week Could Be Crunch-Time For The ECB

The dollar rose against the euro on Monday as disappointing German inflation data along with the expectation of very weak May inflation figures in the Eurozone, were the latest signs that the European Central Bank could be forced to ease monetary policy this week to fight low inflation. German inflation for May missed expectations, with the EU-harmonized annual reading falling to 0.6% from 1.1% in April. Separately, data showed the region’s manufacturing growth slowed by more in May than initially estimated. Market participants believe that the ECB cannot afford to do nothing this week, having intentionally raised hopes of further monetary easing so the expectation is that the ECB will go ahead and cut rates. The maximum impact from an ECB rate cut would come with a negative deposit rate and liquidity-boosting measures. The goals would be to cap EUR appreciation while reducing fragmentation and strengthening forward guidance. The euro EUR/USD fell to $1.3598 from $1.3635 on Friday. The euro has fallen since ECB President Mario Draghi hinted that easing could come in June. The ECB will issue a decision on Thursday, followed by a press conference by ECB President Mario Draghi. At the same time, the Federal Reserve is on track to finish its stimulative bond-buying program by year end, setting up for eventual rate hikes.

More Monetary Easing Could Be On The Way As Australian Economy Slows

Australia’s economy appears to be slowing and some economists argue that a more subdued outlook could lead to further monetary easing from the country’s central bank. Australia is due to report first quarter economic growth on Wednesday. While economists expect robust growth of 3.2 percent on-year, up from 2.8 percent in the previous quarter analysts expect the economy will take a turn for the worse in the second quarter with growth expected to slow to 0.4 percent on-quarter from 0.7-0.8 percent in the first quarter. This pull back may prompt the Reserve Bank of Australia to take a more dovish stance. Australia’s economy enjoyed 20 years of strong growth thanks to its mining boom, but lost some of its luster recently as the boom showed signs of peaking and growth in China, its largest trading partner, slowed. Furthermore, Australia’s conservative government delivered the country’s harshest budget in 20 years last month and many economists are concerned about the toll it will take on the economy. Business and investor confidence dropped following the budget, while red-hot housing prices eased, a factor that economists worry could dampen consumer spending. Financial conditions have tightened and consumer sentiment is at levels not seen since prior to the current rate easing cycle. The RBA left interest rates at a record low of 2.5 percent on Tuesday, for the ninth straight month.

Dow & S&P End At Record Highs

The Dow and the S&P 500 finished at record highs again yesterday after a reading on U.S. manufacturing was revised to show more strength than initially indicated. Industrials and material stocks were among the day’s biggest gainers, while the technology sector ended lower, weighed down by big names like Apple and Google. The Institute for Supply Management officially corrected its earlier report to show that the pace of growth in the U.S. manufacturing sector accelerated in May. Wall Street fell initially after the first report, with all 10 S&P 500 sector indexes down for the day at one point. The Dow Jones industrial average rose 26.46 points to 16,743.63 as the S&P 500 gained 1.40 points to 1,924.97. The Nasdaq Composite, however, dropped 5.42 points to 4,237.20. The Dow ended at a second consecutive record high while the S&P 500 closed at a third consecutive record though volume was still slight, suggesting a lack of conviction behind the advance.

That sums up today’s highlights! Don’t miss our regular updates on today’s tradable events via our Facebook, Twitter, Google+ and LinkedIn pages. We hope you have a profitable day on the markets.

Euro Declines Before German Sentiment & Elections

Here’s our a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: U.S. New Home Sales @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Euro Declines Before German Sentiment & Elections

The euro was set for a three-week decline today before data that may show German business confidence fell and prompt the European Central Bank to boost stimulus as soon as next month. The Euro approached a three-month low versus its U.S. peer amid concern that euro-skeptic parties will gain ground in elections for the European Union Parliament. The dollar remained higher against most major counterparts before a U.S. report due today that may indicate an increase in new home sales last month. The euro bought $1.3651 from $1.3656 after touching $1.3635 on May 21, the weakest since Feb. 13 and fetched 138.81 yen from 138.93.The dollar was little changed at 101.72 yen after climbing 0.4 percent yesterday. The euro has fallen 0.3 percent since May 16, extending a 1.3 percent decline in the previous two weeks.

U.S. Stocks End Higher For Second Day

U.S. stocks rose modestly yesterday, extending the prior day’s rally, as investors weighed varied economic reports a day after the Federal Reserve signaled interest rates would remain low for the foreseeable future. Yesterday’s data included the Markit Economics preliminary index of U.S. manufacturing, which rose to 56.2 this month from 55.4 in April. Other reports had sales of previously owned homes rising last month, the Conference Board’s index of leading economic indicators gaining in April and more Americans than estimated filing claims for jobless benefits last week. After a 43-point fall and 32-point gain, the Dow Jones Industrial Average rose 10.02 points, or nearly 0.1 percent, to 16,543.08. After rising within 2 points of its record close, the S&P 500 added 4.46 points, or 0.2 percent, to 1,892.49 while the dollar gained against the currencies of major U.S. trading partners.

Gold Trades Below $1,300 As Palladium Continues To Rise

Gold traded below $1,300 an ounce this week as investors assessed the health of the U.S. economy and the impact on monetary stimulus. Platinum and palladium were poised for a second week of gains. Bullion for immediate delivery traded at $1,294.13 an ounce today after climbing 0.2 percent yesterday, following data that showed U.S. jobless claims rose more than forecast. Gold has advanced 7.7 percent this year partly on tension in Ukraine and concern that the U.S. economic recovery may be fragile. U.S. data continues to be mixed which keeps gold in a tight trading range.

That sums up today’s highlights! All the latest trading updates can be found on our Facebook, Google+, Twitter and LinkedIn pages - stay in touch!

We hope you have a profitable day on the markets.

Stocks Fall Following FED Powwow

U.S. stocks dropped abruptly on Wednesday, declining from previous highs, following minutes from the FED’s latest meeting which typified conflicting opinions over continuous stimulus efforts. The Dow Jones fell 108.13 points, or 0.8 percent to 13,927.54, with Caterpillar took a hit following news that the worldwide maker of building and mining tools announced that its global sales decreased in the first quarter. After a 12-year high on Tuesday, the Nasdaq slid 49.19 points, or 1.5 percent, to 3,164.41 while Gold fell 1.6 percent to lower than $1,600 an ounce, stressed by the FOMC minutes and dollar’s heft. With individual stock changes, Boeing shot 0.2 percent one day following promises by engineers who accepted the plane manufacturer’s deal thus deflating a labour disagreement.

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