Tag Archives: Euro

Euro Wobbles On ECB’s Cautious Stance, Dollar Wavers

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: CAD Employment Change @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Euro Wobbles On ECB’s Cautious Stance, Dollar Wavers

The euro was on the backfoot early today after European Central Bank President Mario Draghi struck a cautious note on the euro zone economy. The European Central Bank’s decision yesterday to leave interest rates unchanged was not unexpected, but Draghi said the Ukraine crisis threatened the economy and weakened the euro. The euro traded little changed at $1.3360 after falling about 0.15 percent overnight. The currency which hit a nine-month low of $1.3333 on Wednesday stands to lose about 0.5 percent on the week.

Traders are also watching out for the outcome of the Bank of Japan’s monetary policy meeting later in the day for any cues. While the BOJ is expected to stand pat on policy, a weaker assessment of the economy by policymakers could stoke expectations of further monetary easing and dent the yen.

Draghi Blames Italy As Recession Tarnishes Euro Area

Mario Draghi has blamed Italy itself for its third recession since 2008.The day after data showed the euro-area’s third-biggest economy unexpectedly contracted last quarter, the European Central Bank president singled out his country’s lack of structural reform and the disincentive for investment it engenders. This followed an opening statement regarding the region’s uneven recovery. The comments may increase pressure on Italian Prime Minister Matteo Renzi to turn around an economy with youth unemployment above 40 percent and a recession that threatens the 18-nation currency bloc’s nascent revival. The ECB president’s comments on his homeland were blunter than normal, adding to the contrast with countries such as Spain that have engaged in more structural adjustments.

Gold Climbs To 3-Week High As Iraq Tensions Rise

Gold has advanced to the highest level in three weeks, due to end the longest run of weekly losses since September as haven demand increased on unrest in the Middle East and tension over Ukraine. Bullion for immediate delivery rose as much as 0.5 percent to $1,318.72 an ounce, the highest since July 18. A fourth day of gains would make it the longest rally since June. Fighting in Ukraine and the Middle East helped gold rebound this year from the biggest drop in more than three decades. Gold has risen 1.9 percent this week even though the dollar reached a nine-month high against the euro on signs the U.S. is recovering while Europe’s economy falters. Prices dropped for the previous three weeks. European Central Bank President Mario Draghi yesterday signaled monetary policy will diverge from the U.S. for an extended period of time.

That sums up today’s highlights! Don’t forget to keep in touch via the social media platforms for all the latest trading updates of the day. We hope you have a profitable day on the markets.

ECB: Market-Watchers Look to Draghi for Clarity

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

ECB: Market-Watchers Look to Draghi for Clarity

A month after the ECB president, Mario Draghi introduced a varying range of fixes for the euro area’s faltering recovery, market-watchers are in disagreement about how long interest rates will stay near zero and remain unclear on the details of plans to boost lending. Draghi may use today’s appearance in Frankfurt as an opportunity to clarify the situation. As the Federal Reserve and the Bank of England work their way out of crisis-era support for their economies, the ECB continues to steer against the risk of a relapse. Draghi’s guidance on how he expects rates to develop over the next two to four years, if he decides to give any, will be crucial in bolstering investors’ optimism that the worst is truly over, while reassuring them that protection won’t be removed before they’re ready.

The euro is currently trading below $1.37, roughly where it was when the ECB met on June 5 but down from over $1.39 before the ECB flagged the cut in May. The ECB is keeping a close eye on the euro to gauge its impact on already low inflation. Euro zone inflation stood at 0.5 percent in June, well below the ECB’s medium-term target of just under 2 percent. Should the outlook for inflation deteriorate, Mario Draghi has said that the ECB would consider quantitative easing to keep borrowing costs low and boost spending.

Asia Stocks Fall Along With Gold; Dollar Gains Before Data

Asian Stocks fell from a six-year high, while precious metals dropped as the U.S. dollar gained versus its major peers before today’s jobs reports and a euro-area monetary-policy decision. The MSCI Asia Pacific Index slipped 0.2 percent while Standard & Poor’s 500 Index futures lost 0.1 percent. The Aussie slid 0.7 percent, trading at 93.78 U.S., cents after Reserve Bank of Australia Governor Glenn Stevens said investors are underestimating the chance of currency losses. Oil in New York fell for a sixth day, its longest slump since May 2012. Australia’s currency also slid as the country’s central bank governor said it was overvalued. The Aussie is more than just a few cents overvalued and the risk of a significant fall is being underestimated according to Stevens.

The U.S. Non-Farm Payrolls report comes after yesterday’s ADP data showed U.S. employment rose in June by the most since 2012, with more workers hired than economists projected. The European Central Bank meets today after enacting unprecedented stimulus last month, while in Asia, data on services industries is due.

Watch For Google’s Streaming Music Service…

With its Songza deal, Google could end up dominating other streaming music services if it becomes the default option on Android mobile devices due to Android’s dominance among mobile devices and Songza’s ability to curate and recommend new music to its users. Android devices make up nearly 62 percent of the U.S. market for smartphones, according to research as of May 2014. With the Songza move, Google pitches itself against Spotify, Pandora and Rdio as well as Apple, which acquired Beats Music and its streaming service, and Amazon, which recently launched a streaming music service for its Prime customers. The deal could be a win for Google’s advertising business. Keep an eye on Google stocks…

That sums up today’s highlights. It’s Non-Farm Payrolls day today so a busy day on the markets. Don’t forget you can stay regularly updated on events by visiting our Facebook, Twitter, Google+ and LinkedIn pages.

We hope you have a profitable day on the markets!

Fed May Raise Rates Faster Than Expected

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 CPI @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Fed Expected To Raise Rates Faster Than Expected

Economists expect the Federal Reserve to raise its benchmark interest rate faster than market expectations. Investors are assuming a slower pace of rate increases than the Fed itself, and may be overlooking recent reports showing the world’s largest economy is gaining strength after contracting in the first quarter. In March, officials predicted the fed funds rate, now between zero and 0.25 percent, would rise to 1 percent at the end of next year and 2.25 percent at the end of 2016. Fed officials may have underestimated the strength of the economy. Unemployment stood at 6.3 percent in May, at the top end of the range most officials forecast for the fourth quarter. Similarly, the personal consumption expenditures price index - the Fed’s preferred gauge of inflation, rose 1.6 percent for the 12 months ending April, a rate most officials expected at the end of the year. Officials will release a new set of quarterly forecasts for unemployment, inflation, economic growth and the benchmark federal funds rate at the conclusion of their meeting tomorrow.

The Tide Turns Against The Euro

The euro tumbled following monetary easing from the European Central Bank earlier this month and analysts anticipate further currency weakness. Market positioning data released on Friday showed that net short positions in the euro/dollar i.e. a bet on the euro falling, have risen to their highest level since late May 2013. Europe’s single currency has declined just over 3 percent from a 2 1/2 year high hit in early June, undermined by the ECB’s decision to impose a negative interest rate on banks for their deposits and cut its main lending rate in a bid to lift inflation and a weak economy. Currency analysts say the ECB’s monetary easing has fueled the use of the euro for carry trades - borrowing money in a currency that is backed by low interest rates to fund investments in higher-yielding assets. It seems, therefore, that the tide is turning against the once-resilient euro. Recent data shows that weekly market positioning data speculators have increased bullish bets on the greenback to their highest level in almost four months.

Iraq Violence Lifts Gold’s Safe-Haven Appeal

Gold steadied below a three-week high on today as escalating tensions in Iraq attracted some safe-haven bids. Bullion initially rallied after the United States said it could launch air strikes to support the Iraqi government after a rampage by Sunni Islamist insurgents. Investors often turn to gold or other precious metals as a safe haven in times of political or financial uncertainty but so far this year, gold has failed to maintain gains despite heightened geopolitical tensions. Gold’s initial gains were also boosted by developments in Ukraine. Traders warned this Wednesday’s Federal Reserve policy meeting could bring caution to any rally in gold as markets watch for any signals on when the U.S. central bank might begin raising interest rates.

That sums up today’s highlights! Don’t forget to keep a check on all the market events of the day via our Facebook, Twitter, Google+, and LinkedIn. We hope you have a profitable day on the markets.

RBNZ Expected To Hike Official Cash Rate

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: NZD Official Cash Rate @ 21.00 GMT

WHAT WE’RE WATCHING TODAY

RBNZ Expected To Hike Official Cash Rate

The Reserve Bank of New Zealand is widely expected to lift the official cash rate a further 25 bps when it meets today. However, there is less consensus on the indications the bank may provide about the timing and pace of future hikes. The RBNZ began lifting the OCR from historically low rates in March to the current 3.00% and at the time signaled regular increases at six weekly intervals through September. Since then the balance of factors has shifted. While dairy prices have declined and the pace of gains in house prices has slowed, the exchange rate has remained steady, migration has soared, and economic data have surprised to the upside. The net balance doesn’t change expectations for a hike on Thursday but economists differ on whether this raises the odds of a hold in July and the number of OCR hikes that are likely this year. Expectations range from another 25 basis hike by December, following the likely Thursday hike, to three more hikes that will take the OCR to 4.00%.The money market is expecting a total of two hikes by December. Reserve Bank governor Graeme Wheeler will release the bank’s decision today @ 21.00 hours GMT. The bank’s statement will include an updated set of economic forecasts in the quarterly Monetary Policy Statement.

Euro Under Pressure In Asia As Stocks Sit On Gains

The euro came under fire today as the European Central Bank’s embrace of negative interest rates encouraged flows out of the Eurozone, while Asian shares consolidated near recent highs. In contrast the dollar found support in a run of improving U.S. economic data which has increased speculation that the Federal Reserve might sound less dovish on policy when it meets next week. The euro fell to $1.3524 and further away from a $1.3668 peak scored at the start of the week. It also hit a seven-month trough on the higher-yielding Australian dollar and to near its lowest against the pound since late 2007.Action in equity markets was more muted with many indices already having come a long way. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.2 percent from a three-year peak. Japan’s Nikkei edged up 0.3 percent aided by MSCI’s decision to remove South Korea and Taiwan indexes from its review list for reclassification to developed markets, keeping them in the emerging markets classification. Moves were minor on Wall Street with the Dow up 0.02 percent, while the S&P 500 down 0.02 percent.

Google Buying Satellite Company For $500 Million

Google is buying Skybox Imaging, a 5 year old startup, in a deal that could serve as a launching pad for the company to send its own fleet of satellites to take aerial pictures and provide online access to remote areas of the world. The $500 million acquisition will initially provide Google with the means to improve the quality and immediacy of the satellite imagery used in its digital maps. Google plans to use Skybox’s satellite already in orbit to supplement the material that it licenses from more than 1,000 sources, including other satellite companies. Eventually, though, Google hopes to build more satellites that could be used to beam Internet access to points around the world.

That sums up today’s highlights! Check into our Facebook, Twitter and Google+ pages for regular updates on all the tradable events of the day. We hope you have a profitable day on the markets.

Dollar Steady, Drawing Support From Rise In US Yields

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 Steady Drawing Support From Rise In US Yields

The dollar held steady against a basket of major currencies on Tuesday, holding on to gains made the previous day as a result of higher U.S. bond yields after last week’s solid U.S. jobs report. The dollar index stood at 80.607, keeping above a near two-week low of 80.240 touched last Friday. The dollar held its ground against the euro, which pulled back from last week’s high of $1.3677 as a short-covering rally following the European Central Bank’s easing steps lost momentum. The Euro was steady at $1.3591, after having lost 0.4 percent on Monday. The retreat in the euro brought it back closer to a four-month low of $1.3503 touched on Thursday shortly after the ECB cut interest rates to record lows and took its deposit rate into negative territory for the first time. The euro could face further downward pressure in the near term, hampered by a widening in interest rate differentials between the United States and the euro zone, according to market strategists, and interest rate differentials could be a driver for the euro versus the dollar. A rise in the benchmark 10-year U.S. Treasury yield from an 11-month low of 2.042 percent set in late May has helped bolster the greenback’s appeal. The 10-year U.S. Treasury yield last stood near 2.60 percent.

Global Stocks Near Record Highs As Volumes Decline

Global stock markets are on the brink of record highs, but analysts warn of alarm bells ringing as volumes in the markets are low and show no sign of bottoming out. U.S. equity indices hit record highs last week and looked set to advance their gains on Monday as the Dow Jones Industrial Average rose to an intraday record. In Europe, stocks also started the week on a positive note. The MSCI All Country World Index, which tracks equity markets across 45 countries, was higher on Monday at 426.77, just shy of its record high of 428.63 hit in 2007. However, even as the bull run continues, supported by data pointing to an economic recovery in the U.S. and Europe, traders are concerned about the lack of price volatility and low trading volumes, which they say make it difficult to detect investor mood. During the financial crisis, U.S. equity volumes traded at around 9 billion shares a day. Now, around 5 billion shares a day are being traded. Small volumes are also adding to low equity market volatility, which has dropped to levels not seen since 2007. As equity markets trade around levels not seen since before the global financial crisis in 2008, economists have warned that a correction could be on the way.

Paypal Chief Joins Facebook To Strengthen Mobile Messaging

A stronger set of features, possibly including payments, may be coming to Facebook’s messaging properties as former PayPal president David Marcus joins the social network as head of mobile messaging. Facebook’s hiring of Marcus represents a serious investment by the company to strengthen its messaging software. Facebook did not say what improvements specifically might be coming, but it’s clear the company is looking to further expand the use of its messaging apps, and maybe introduce monetization features. Messaging has grown to become an important part of Facebook’s service. Around billion messages are sent through Facebook daily, according to the company. Messenger, Facebook’s standalone messaging app, is also used now by more than 200 million people every month, just under one-fifth of Facebook’s total user base. Facebook is becoming more active in mobile messaging with other apps, too, having recently purchased WhatsApp, and with a new photo messaging app in the pipeline.

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

What Will Apple Reveal This Week?

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: GB Manufacturing PMI @ 08.30 & U.S. ISM Manufacturing PMI @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

What Will Apple Reveal This Week?

Apple’s Worldwide Developer Conference starts today amid speculation about what the company is planning to reveal. Rumours are that Apple’s lineup this year will be the best in 25 years. Although consumers will likely have to wait until later this year for big product announcements, industry experts say that the company may roll out some new features in its software at the conference. The focus is expected to be on two big themes; health and connecting the home. For Apple, it’s all about having all the devices connected and getting people even more locked into their ecosystem and adding value to devices that users already have. The company’s competitors, including Google, which recently bought the smart thermostat company Nest, are all making plays in this space and time is ticking for Apple to do the same. Presently, it is a fragmented experience and the plan is to start connecting things together which Apple will do by using the iPhone. Related to improving Apple’s home experience, the company may also implement voice-enabled Siri capabilities in Apple TV which would help the company compete with Amazon’s Fire TV. In addition, there are rumours of the next iPhone and iPad having larger screens and that the updated operating system will enable split-screen capabilities on the iPad. This would help it compete with the growing number of tablets flooding the enterprise space. A revealing week ahead for Apple watchers, traders will be watching the markets for movements in the price of Apple stocks.

ECB Expectations Pressure Euro

The euro came under pressure today as the market braced for further stimulus measures from the European Central Bank this week. Hopes for policy action at Thursday’s ECB policy review have been high since ECB president Mario Draghi said in Portugal last week that the central bank must be prepared to take action if risks surrounding persistently low inflation emerge. The ECB is thus preparing a package of policy options for its meeting that includes cuts in all its interest rates. In the markets, the focus is shifting to what the Governing Council could do to ‘surprise’ the markets, such as signaling that more aggressive unconventional quantitative easing measures could be forthcoming. Analysts point out that if the ECB does not surprise markets, there could be some cautious profit taking on the EUR, and add that risks for EUR could be on the downside over the medium term. The euro edged down slightly to $1.3627, and remained not far from a three-month low of $1.3586 touched on Thursday.

Gold Falls In Longest Losing Streak In 7 Months

Gold fell for a fifth straight session today in its longest losing streak since November, affected by stronger global equities and weak physical demand in Asia. Spot gold had eased 0.2 percent to $1,247.89 an ounce, not too far from a 4-month low of $1,241.99 hit on Friday. The five-day fall is the metal’s longest losing run since October/November when it dropped for seven straight days. The technical outlook for gold is not looking very good and there is a strong chance it will fall to $1,230 and possibly all the way $1,200. Physical markets haven’t reacted very much to last week’s drop but if prices fall to $1,200, there could be some action. Physical buying failed to pick up as consumers expect gold prices to fall even further. Other data also showed that hedge funds and money managers cut their bullish bets in gold futures and options in the latest week to their lowest level in nearly four months, another sign of waning investor interest in the metal amid higher equities. An early or quick gold turnaround is not expected as the market may not have bottomed yet.

That sums up today’s highlights! It’s a busy week on the market so ensure you’re up-to-date with all the latest news via our Facebook, Twitter, LinkedIn and Google+ pages. We hope you have a profitable day on the markets.

Dollar Pauses After Rally; Euro Close To 3-Month Low

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. Unemployment Claims @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Dollar Pauses After Rally; Euro Close To 3-Month Low

The dollar hovered near a two-month high against a basket of major currencies today, taking a pause after rallying due to a shake-out of long positions in sterling and a drop in the euro. The dollar index eased 0.1 percent to 80.490, close to Wednesday’s high of 80.581, its highest level since early April. A break above 80.599, the April 4 peak, will take the index back to highs not seen since mid-February. Traders seemed to be at a loss to explain the greenback’s rise apart from pointing to month-end dollar demand. The euro edged up 0.1 percent to $1.3604, holding slightly above a three-month low of $1.3587 set on Wednesday. Expectations of some policy action from the European Central Bank (ECB) have been mounting, a key reason for the recent underperformance in the euro. Many economists expect the ECB to cut its deposit rate into negative territory next week.

Gold Is Sinking…Will It Get Worse?

Gold extended losses to a third straight session on Thursday, hitting 16-week lows on a stronger dollar and weak physical demand in top buyer China. The gold market continues to show more signs of weakness as the precious metal closed at $1,259.30 per ounce, down another $6.20 after Tuesday’s $25 slide. The fact that Wednesday’s drop takes bullion below its second critical support level of $1,262 is troubling some traders as technical pressure could continue to weigh on gold in the days ahead. Gold is seen as looking increasingly weak as geopolitical concerns over Russia and Ukraine subside and that the only motivation to buy gold might be an upward turn in inflation or a war, neither of which seem to be a reality at the moment. In the meantime, Wednesday’s stronger dollar offered no support. The question is being asked by many traders, therefore, is, where does gold go from here?

Apple To Acquire Beats Electronics

Apple has announced that it will acquire headphone maker Beats Electronics for $3 billion.The deal is expected to close in the fiscal fourth quarter. Apple will pay $2.6 billion in cash and another $400 million in equity. It will also continue to use the Beats brand. Beats Electronics is a key vendor in the premium headphone market. Apple reportedly began talks to buy the company in early May. Beats’ profit margins in the headphone market may be substantial. A pair of its high-end headphones sell for as much as $450, but production costs across the brand are said to run to only about $14 a pair. Apple said the deal would add to earnings in fiscal 2015. Beats also recently entered the streaming music business placing it in head-to-head competition with much larger veteran rivals Pandora and Spotify.

That sums up today’s highlights! Keep in touch with all the day’s events on our Facebook, Twitter, Google+ & LinkedIn pages. We hope you have a profitable day on the markets.

Yen Touches Week Low Against Euro

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. Core Durable Goods @ 12.30 & U.S. CB Consumer Confidence @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Yen Touches Week Low Against Euro

The yen touched the lowest level in a week against the euro as speculation that global policy makers will add to measures supporting economic growth damped demand for haven assets. Japan’s currency dropped versus most of its 16 major counterparts before Bank of Japan Governor Haruhiko Kuroda speaks at a conference tomorrow. The BOJ is still more inclined for easing. If global risk appetite and the global economy continue to improve, the risk is that the yen will weaken. The yen lost 0.1 percent to 139.20 per euro at 7:07 a.m. in London yesterday, after touching 139.37, the weakest level since May 16. It was little changed at 101.93 per dollar in New York, when it touched 102.05, the lowest since May 15. The euro gained 0.1 percent to $1.3658 after falling to as low as $1.3615 yesterday, a level unseen since Feb. 13.

Gold Prices Hold Steady

Gold prices dipped a touch lower today with little sign that prices would break out of their narrow range ahead of a busy week of economic reports. Gold for June delivery was down $5.10 to $1,268.60 an ounce, ending last week with a slight loss, though it didn’t stray too far away from the key $1,300 level. Analysts say that gold desperately needs some stimulus to break it out of its lethargy. Gold’s appeal this year has been burnished by the geopolitical risks in Ukraine which have heightened tensions between Russia and the West.

Investors will have plenty of economic data to chew on throughout the week, starting with durable goods, the FHFA price index and the S&P/Case-Shiller price index all before Tuesday’s opening bell. Then, after that, consumer confidence numbers, as well as manufacturing data from the Richmond Fed and the Dallas Fed will be released.

Pfizer Drops AstraZeneca Deal

U.S. pharmaceutical Pfizer has confirmed that it would not be making a further multibillion-dollar offer for AstraZeneca U.K. Last week, AstraZeneca had rejected a revised £69 billion ($116 billion) offer from Pfizer as inadequate and presenting significant risks for its shareholders. Under U.K. takeover regulations, Pfizer had until Monday to make a full and final offer for AstraZeneca. It will now have to wait six months before it can make another approach or three months if it is invited to do so. Pfizer intends to continue focusing on the execution of its plans while remaining responsible stewards of their shareholders’ capital. Meanwhile, AstraZeneca said it welcomed the climb down and would continue building on the momentum already demonstrated as an independent company. AstraZeneca’s U.K.-listed shares had come under pressure following the rejection of last week’s offer with investors voicing their disappointment that the company had not pursued a deal with Pfizer.

That sums up today’s highlights! Remember to keep in touch via Facebook, Twitter, Google+ and LinkedIn for all the latest financial developments.

We hope you have a profitable day on the markets.

Euro Declines Before German Sentiment & Elections

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. 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.

Euro Inches Away From 2 1/2-Month Lows

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

Euro Inches Away From 2 1/2-Month Lows

The euro staged a rebound today from a 2-1/2-month trough rising 0.1 percent to $1.3718. It had fallen as far as $1.3648 on Thursday, its lowest level since late February, in response to data showing the Eurozone grew much less than expected at the start of the year. The euro was down about 0.3 percent for the week at its current levels, putting it on track for its second straight weekly decline. The euro has fallen roughly 2 percent since May 8 when European Central Bank (ECB) President Mario Draghi persuaded markets that the bank was ready to inject fresh stimulus next month. The disappointing growth figures on Thursday only served to fuel those dovish expectations. The euro eased 0.1 percent to about 139.17 yen, not far from a 2-1/2-month low near 138.97 yen set on Thursday.

Stock Market Slumps As Economy Stuck In Low Growth

The big debate about the U.S. economy as the country emerges from the winter is whether the growth it has been experiencing is modest or accelerating. Recent figures show that recovery is “modest” which has big implications for stock prices. April Industrial Production, down 0.6 percent, was a big disappointment since it was only expected to be down 0.2 percent. That joins April Retail Sales, released on Tuesday, which were also disappointing. Bond yields are dropping in the U.S. and most of Europe, but importantly bond yields are higher in the periphery in Europe…in Italy, in Greece and in Spain. The final number we are looking for is April Housing Starts, out today. Starts are expected at 984,000, the best since December, but some are expecting more than 1.0 million Permits. The numbers so far have not been optimistic for housing. The NAHB Housing Market Index, an indicator of sentiment among home builders was also a disappointment, at 45, below expectations of 48. If we get disappointing Starts and Permits, could it be the nail in the coffin for a robust housing recovery this spring?

Gold Settles Lower After Jump In Consumer Prices

Gold prices on Thursday gave back some of the gains they notched a day earlier after a jump in consumer prices in the U.S. and a drop in jobless claims pointed to an economy on the mend, dulling the precious metal’s safe-haven appeal. Gold for June delivery fell $12.30, or 0.9%, to settle at $1,293.60 an ounce. This comes a day after the precious metal closed up $11.10, or 0.9%, at $1,305.90 an ounce. Gold reacted on the positive U.S. economic news of a lower reading of initial jobless claims which were below 300,000 - a positive sign for labour markets going forward. Consumer prices rose by 0.3% in April to mark the biggest gain since June, with core prices up 0.2%, while jobless claims fell to the lowest level since 2007. Analysts say jobless claims and CPI data have triggered a shift in sentiment for markets. Traders are punishing gold on the back of this data as it shows an improvement in the economic growth.

That sums up today’s highlights! Don’t forget you can stay in touch via our social media channels for all your up-to-the-the minute trading news. We hope you have a profitable day on the markets.