Tag Archives: Gold

Dollar Subdued After U.S. Jobs Data

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

WHAT WE’RE WATCHING TODAY

Dollar Subdued After Jobs Data, Euro Wary Of Bond-Buying Stimulus

Commodity currencies held onto solid gains early today as the dollar and euro fell by the wayside and lost ground to an otherwise soft yen. The U.S. dollar lost favour with investors after the U.S. jobs report failed to live up to the market’s high expectations, whilst the possibility of the European Central Bank launching its own bond-buying stimulus kept euro bulls at bay. Data last Friday showed the world’s biggest economy generated 192,000 jobs last month, just below economists’ estimate of 200,000 but well down from whisper numbers that had made the rounds in the markets. Traders said the dollar’s dip was a reflection of market positioning rather than any true weakness in payrolls. However, the dollar only slightly underperformed the euro, which came under pressure after reports added weight to possible bond-buying stimulus from the ECB. The euro fell to one-week lows against the yen at 141.30. Against the dollar, it stood at $1.3697, having edged off a five-week trough of $1.3672.

Gold Holds Gains On US Jobs Data

Despite the weak jobs report, data on Friday showed that investors had pulled money out of gold, raising the risk that the gains in prices might not last. However, gold held onto gains today following its biggest one-day jump in over three weeks as investor worries about an early U.S. interest rate hike eased when the nonfarm payrolls report failed to meet market expectations. Markets feared that a strong jobs report, which followed a recent string of good economic data, could prompt a tightening of U.S. monetary policy after Federal Reserve Chair Janet Yellen indicated last month that interest rates could rise in the first half of 2015. Low interest rates have been an important factor driving gold prices higher in recent years. Gold remained steady at $1,302.36 an ounce today, after gaining 1.2 percent on Friday - its biggest percentage increase since March 12 and close to a one-week high of $1,306.50 hit in the previous session.

Is Google Planning To Jump Into Wireless?

According to reports, Google is considering launching its own wireless service, likely to commence in some of the U.S cities where the company currently offers Google Fiber. The company had talks with Verizon early in the year about buying wholesale access to its networks, and then presumably selling it straight to consumers. Google previously had similar talks with Sprint. Although Google is poised to move into wireless broadband, its network is still tiny compared to major broadband providers but the company’s penchant for ambitious experiments makes it a definite possibility that it will attempt to penetrate the wireless market. Watch this space….and stock prices!

That sums up today’s highlights! Keep checking in via our social media channels for all the latest financial news and events of the day! We hope you have a profitable day on the markets.

U.S. Non-Farm Payrolls: High Hopes For March Jobs Report

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

Main Trading Event Of The Day: USD Non-Farm Employment Change @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

U.S. Non-Farm Payrolls: High Hopes For March Jobs Report

With U.S. non-farm payrolls expected today, employers most likely increased hiring in March. The consensus forecast of economists is 200,000 nonfarm payrolls and an unemployment rate of 6.6 percent, compared with the 175,000 jobs added in February and an unemployment rate of 6.7 percent, according to Thomson Reuters. Traders are, however, speculating that today’s jobs report could top economists’ forecasts with data being as high as 220,000 to 240,000. The recent winter that brought heavy snowfalls well into March could still have some negative effect on hiring but some traders are hopeful that there was enough pent-up demand to cause a strong bounce back.

Gold meanwhile, was languishing near a seven-week low on Tuesday, after posting its first monthly drop of the year. The metal dropped nearly 1 percent on Monday, hitting a low of $1,282.04, the lowest since Feb. 11. Yesterday, gold gave up a chunk of its recent gains as the dollar moved up after the European Central Bank’s decision to leave interest rates unchanged. Today, gold tipped into positive territory, gaining 50 cents to $1,285.10 an ounce but stayed in a tight range as traders await today’s jobs report.

USD Non-Farm Payrolls today @ 12.30 GMT

Apple Inc: New Products Will Bring Stock Revival

Traders are betting that new Apple products will propel the world’s largest company after it rebounded from the worst monthly loss in a year. The stock lost 4.3 percent last quarter, including an 11 percent retreat in January. A range of new products to be introduced this year will sustain a sales boom and help keep the stock afloat. Apple will introduce a TV set-top box and is negotiating with Time Warner Cable Inc. and other potential partners to add video content and is also exploring a smartwatch, prompting some analysts to recommend holding Apple stock.

That sums up today’s highlights! Don’t forget to keep in touch with us via our Facebook, Twitter, Google+ and LinkedIn pages for up-to-the minute news and event updates! We hope you have a profitable day on the markets.

Dollar Gains But Euro Weaker As ECB Considers Easing

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

Main Trading Event Of The Day: GBP Current Account @ 09.30 GMT

WHAT WE’RE WATCHING TODAY

Dollar Gains But Euro Weaker As ECB Considers Easing

The dollar gained against the euro on Thursday as investors bet the Federal Reserve will start hiking rates before Europe’s central bank, which has signaled it could loosen monetary policy soon. Fed Chair Janet Yellen said that the central bank could potentially raise rates after a period of about six months from the end of its bond-buying program. That puts the first hike as early as next spring and has surprised market participants. At the same time, the euro has been under pressure on rising expectations the European Central Bank will move to further ease monetary policy in an effort to stave off deflation. The euro EUR/USD changed hands at $1.3744, down 0.3% on the day. The shared currency has weakened since ECB officials this week signaled the central bank would consider negative deposit rates and a move toward outright quantitative easing. The U.S. dollar added slightly to gains after the Labor Department said the number of people who applied for first-time weekly jobless benefits fell by 10,000 to 311,000 in the week ended March 20, the lowest level in four months. Economists had forecast claims of 320,000.

Gold Near 6-Week Low; Heading For Second Weekly Loss

Gold recovered slightly on Friday after sharp overnight declines but the metal remained near six-week lows and on track for a second straight weekly decline, as improving sentiment over the U.S. economic outlook dented its safe-haven appeal. Bullion has dropped about $100 an ounce from a six-month high in the last nine trading sessions on strong U.S. economic data and comments by Federal Reserve chairman Janet Yellen that interest rates could rise in the first half of 2015. The sharp drop in prices in the last few days is expected to bring physical buyers back into the market and help gold prices consolidate although some analysts have expressed concern that there could be a further downside ahead for gold and that the metal will struggle in the face of weak demand and forecasted rising real interest rates in the U.S.

Is Social Media The Future Of Trading?

Stock prices are driven largely by mass psychology while social media enhances people’s ability to share opinions and news on a large scale. As more individuals join the social networks Facebook, Twitter, or LinkedIn, their role in spreading information will increase. Market information will be more easily shared amongst consumers of social media, decreasing the time it takes for potential investors to react to changing conditions. Simultaneously, the reaction time of potential investors to opinions will decrease. If there are rumours surrounding a stock or other investment and no factual information to check them with, social media users will consume the rumours as a substitute for fact. The mass psychology of the investing community will be more heavily dictated by social media. Looking to the future, traders will rely on social media for trading matters more and more.

That sums up Friday’s highlights! Keep up with all the trading news for the day via Facebook, Twitter, Google+ and LinkedIn. We hope you have a profitable day on the markets.

China & Japan Data In Focus

Welcome to Monday’s ‘Just A Minute!’ bringing you a 60 second summary of what’s happening in the markets:

Main Trading Event Of The Day: EUR German Flash Manufacturing PMI @ 08.30 GMT

Trading Event Of The Week: Key global leaders are meeting in the Hague this week for scheduled nuclear talks, however, the current Crimean crisis will provide the basis for major discussion and global focus. There is potential for Russia to be removed from the G8, furthering the geopolitical tensions and humiliating president Putin. If such a move is made, there will be significant reaction in the global financial markets.

WHAT WE’RE WATCHING TODAY

China & Japan Data In Focus This Week

In the markets this week, much of the focus will be on data from China and Japan for the latest insight on the health of Asia’s two biggest economies. China’s HSBC’s flash purchasing managers’ index (PMI) for March is released on Monday, followed by industrial profit data on Thursday. The HSBC PMI fell to 48.1 in March, compared with a final reading of 48.5 in February, staying below the 50-mark that divides contraction from expansion in the sector. It is the latest sign of weakness in the world’s second biggest economy. Favourability towards investing in Chinese stocks has diminished over the past four years among market analysts, leading almost every previous bull to lose interest. Analysts are now calling for deflation in the country where they once could only see unstoppable growth. Focus is now on a credit bubble and efforts by the PBOC to deleverage in order to reign in shadow-banking. The deflationary pressures China is experiencing are also linked to commodity prices. Despite the pessimism, some analysts believe that the four-year downtrend in the Shanghai Composite Index is coming to an end, rather than getting ready to accelerate, suggesting that fundamentals almost always look the worst before price turns.

In Japan, economic data at the end of the week will provide a snapshot of the economy and is likely to show continued reasonable growth albeit distorted by the pull forward associated with the coming sales-tax hike. Data is expected to show inflation in Japan rose an annual 1.3 percent in February, after a 1.3 percent rise in January. Retail sales are forecast to rise 3.2 percent in February from a year earlier, while February household spending is seen up 0.1 percent from a year earlier versus a 1.1 percent rise in January.

U.S. Dollar Needs Fresh Impetus To Continue Rally

The U.S. dollar held on to last week’s gains on Monday although there appears to be a lack of any impetus to extend them. The dollar index stood at 80.143, little changed from late New York levels on Friday, not far off a three-week peak of 80.354 set on Thursday. Investors snapped up the dollar last week as they swiftly brought forward the risk of a U.S. interest rate hike early in 2015 after Fed Chair Janet Yellen surprised markets by raising the prospect of such a move. Traders said further gains for the dollar now depend on the strength of coming data, with any acceleration in the U.S. economic recovery likely to bolster expectations of an earlier normalisation of Fed policy. A broader based rally in the USD requires validation of the Fed’s more aggressive interest rate forecasts from a continued step-up in U.S. data according to analysts.

Gold Extends Weekly Loss On Speculation Of Interest Rate Hike

Gold extended the biggest weekly retreat since November, falling half a percent on Monday on speculation that U.S. interest rates will increase next year, further denting the metal’s appeal as a hedge against inflation. A lack of activity in the physical sector also raised some concerns, with demand from China likely to be subdued because of a weak yuan and the discounted prices on the Shanghai Gold Exchange, which discourage imports. Gold eased $7.14 an ounce to $1,326.80 down from a six-month high of $1,391.76 hit early last week. Gold remains under pressure from the U.S. dollar as the U.S. Federal Reserve scales back its quantitative easing program and has suggested a rise in interest rates earlier than expected. The Federal Reserve announced its third $10 billion cut in monthly bond purchases last week as Chair Janet Yellen said benchmark interest rates may rise about six months after the asset buying ends, expected later this year. Investors are less concerned about the tapering part but more about rising U.S. interest rates with Yellen’s comments now at the back of investors’ minds until as 2015 approaches.

That sums up today’s highlights! As usual, you can keep up with events, news and trading tips on our Facebook, Twitter, Google+ and LinkedIn pages.

We hope you have a profitable day on the markets!

Dollar Holds Biggest Advance in Seven Months

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

Main Trading Event Of The Day: USD Unemployment Claims @ 12.30 GMT; USD Existing Home Sales @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Dollar Holds Biggest Advance in Seven Months

The dollar held its biggest gain in seven months after Federal Reserve policy makers signaled that they’ll probably raise interest rates by the middle of next year. The dollar was trading at $1.3836 per euro after climbing 0.7 percent yesterday to $1.3833. The Federal Open Market Committee discarded a jobless-rate threshold for considering when to increase borrowing costs and said it will look at a wider range of data. Policy makers also reduced monthly bond-buying by $10 billion to $55 billion and added that it will slow purchases in further measured steps. Fed Chair Janet Yellen indicated a period of around 6 months between the end of the stimulus and the first rate increase. The rally in the U.S. dollar on the notion that U.S. interest rates could rise sooner rather than later may just be getting started, according to strategists and the outlook for the pace of policy tightening is faster than markets have priced in. The Fed’s announcement confirms the view that the rising-dollar trend will accelerate in the six-month to one-year term and that as long as upcoming U.S. economic data confirms the Fed’s confidence that recent weakness in data is related to unusually cold weather, the dollar should head higher. If data disappoints, that could trigger the dollar to unwind some of the gains, but data is expected to start improving and that means the dollar gains should be built on.

Gold Hovers Near 3-Week Low While Stocks End Lower On Fed

Gold hovered near three-week lows on Thursday as the U.S. dollar jumped on expectations the Federal Reserve could end its bond-buying programme later this year, tarnishing the metal’s safe haven appeal as a hedge against inflation. Although concerns about the Ukraine crisis could lend support, the bullion market was suffering from a lack of physical buying from top gold consumer China following a sharp drop in its currency. The market may recover and rally from here but analysts believe the upside will be limited and that gold could still fall back to about $1,300 an ounce. Sentiment was mixed following the move by the Fed to reduce bond-buying which could overshadow the impact from tensions in Ukraine.

Meanwhile, stocks eased off session lows but still finished firmly in the red on Wednesday after Federal Reserve Chair Janet Yellen suggested interest rate hikes would happen about six months after quantitative easing ends. The Dow Jones Industrial Average slumped 114.02 points to close at 16,222.17, initially tumbling nearly 200 points after Yellen’s rate hike comment. The blue-chip index had been trading in a lackluster 50-point range prior to the decision. The S&P 500 declined 11.48 points to finish at 1,860.77 while the Nasdaq fell 25.71 points to end at 4,307.60.

U.S. Existing Home Sales & New Claims For Unemployment Expected To Drop

Pending home sales have reportedly been weaker lately, with a 0.1% increase in January only just offsetting the 5.8% decline in December, suggesting limited momentum for completed sales. With fewer pending contracts in the pipeline, the pace of existing home sales is likely to have remained soft in February. Total housing inventory was up in January, although the number of homes for sale was still low, indicating that constraints on the supply side are also likely to continue to hold back the sales pace.

The number of new claims for unemployment benefits unexpectedly dropped 9,000 last week to a seasonally adjusted 315,000, the best reading since November. Economists expected a rise in claims to a level of 334,000. The four-week average fell 6,250 to 330,500, the lowest since early December with improved weather conditions apparently having contributed to the improvement in the job data. The number of people still receiving benefits after an initial week of aid fell 48,000 to 2.86 million in the week ended March 1, the lowest level since December. A small rise to 327,000 is forecasted.

That sums up today’s highlights! Stay in touch for all the latest financial news. Find us on Facebook, Twitter, Google+ and LinkedIn.

We hope you have a profitable day on the markets!

Just A Minute!

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

Main Trading Event Of The Day: EUR CPI y/y @ 10.00 GMT

Weekly Event Focus: This week’s German Zew Economic Sentiment report is expected to be the culmination of a series of positive news for the Eurozone and Germany. Growth in the Eurozone exceeded expectations reaching 0.3-0.4 percent in the first quarter. The German economy seems to be carrying the rest of the Eurozone with the strongest rate of job creation in more than two years. This confidence was also reflected in Germany’s composite PMI which reached a 31-month high. This recent data provides encouraging news ahead of the German Zew report and should trigger a rally in the Euro, if the optimism continues.

WHAT WE’RE WATCHING TODAY

Asian Shares Mixed Amid Rising Ukraine Worries

Stocks in Japan and Hong Kong slipped as investors awaited the West’s response to Crimea’s vote to break away from Ukraine and join Russia. Stock markets across Asia Pacific were mixed after the referendum on Sunday in Crimea, amid rising worries over another possible military incursion into Ukraine by Russia. Tensions have weighed on global markets in recent weeks with the possibility of military intervension leading to more risk-averse trading. The yen, which money managers typically buy when global political tensions rise, touched 101.15 per dollar, the strongest the Japanese currency has been since Feb. 5. The euro was at $1.3906, largely unchanged from $1.3912. Some analysts expect the West’s threatened sanctions against Russia would mean financial assets to flow into euro-denominated assets. Japan’s Nikkei lost 0.4%, while Australia’s benchmark S&P ASX 200 shed 0.2% and South Korea’s Kospi gained less than 0.2%. In China, the Hang Seng Index in Hong Kong lost 0.4% and the Shanghai Composite was flat. Stocks had already been uneasy ahead of the Sunday vote, with the S&P 500 index last week logging its biggest weekly loss since January. Headlines are expected to continue to move markets throughout the week according to analysts.

Gold Near Six-Month High On Safe-Haven Bids

Gold was trading near its highest level in over six months on Monday on weaker equities and as Crimea voted to join Russia, heightening tensions between Moscow and the West. Gold has gained 15 percent this year as mounting geopolitical tensions and fears over slowing economic growth spurred demand for the metal seen as a safe-haven asset. Gold was trading at $1,381.34 today after earlier hitting $1,391.76, its highest since Sept. 9. The political environment regarding Ukraine is very supportive of gold prices and it is likely to continue for a while with some analysts anticipating that prices to go all the way to $1,500 in the next few weeks.

Google Working On Electronic Tattoos

Google has announced that it is working on electronic tattoos that will find themselves on the market very soon. The idea behind this new concept is to create an electronic device, involving sensors which is thinner than a sheet of paper and as flexible as a plaster that can stick to the skin. The core benefit is that they become part of the body in a non-invasive, painless and relatively inexpensive way. In addition to sensors, the electronics package can contain wireless networking capability, so they can convey sensor data easily and also be controlled from a remote computer or smartphone. Researchers envision all kinds of medical applications for electronic tattoos, for example, extremely precise thermometers that can track tiny fluctuations in body temperature and set off alarms when the level goes above or below a set threshold. But there are other applications for this idea beyond the doctor’s office. One will be smart clothing; electronics built into clothes. Google’s Android chief, Sundar Pichai used the example of a “smart jacket” when talking about the possibilities of the wearables software development kit he was announcing. The real revolution is flexible electronics - once it arrives, it’s really going to stick!

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

Just A Minute!

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

Main Trading Event Of The Day: NZD Official Cash Rate @ 20.00; RBNZ Monetary Policy Statement @ 20.00 GMT

WHAT WE’RE WATCHING TODAY

NZ Dollar Slips Ahead Of Reserve Bank Policy Review

The New Zealand dollar fell from a post-float high on a trade-weighted basis ahead of the Reserve Bank policy review, which is likely to kick off a tightening cycle with a rate hike. The trade-weighted index rose as high as 79.68, and was at 79.46 at 5pm in Wellington from 79.50 yesterday. The dollar traded at 84.64 US cents at 5pm from 84.61 cents at 8am, and down from 84.80 cents yesterday. Traders have priced in a 101% chance of a rate hike by Reserve Bank governor, Graeme Wheeler, which would lift the appeal of the dollar. Wheeler has previously signalled the official cash rate will have to rise from its record-low 2.5% to head of the threat of future inflation, and investors will be gauging the extent and pace of any future hikes. The central bank has kept OCR at 2.5% since March 2011. New Zealand’s relative economic strength has outperformed its peers, with neighbour Australia under pressure from weak Chinese trade weighing on iron ore and copper prices. Traders will be looking at Australian employment numbers to see how the economy is tracking. The New Zealand dollar rose to 94.48 Australian cents from 93.94 cents yesterday while the local currency fell to 87.20 yen from 87.57 yen and traded at 61.10 euro cents from 61.14 cents. Meanwhile, New Zealand stocks fell amid global concern over Chinese bond defaults and weakening economic data and ahead of the expected rise in interest rates from the central bank. The NZX 50 Index fell 5.407 points, or 0.1%, to 5096.530, the third straight decline. Within the index, 17 stocks fell, 18 rose and 15 were unchanged. Turnover was $133 million.

Gold Still Holding Onto Gains

Gold held on to overnight gains on Wednesday to trade near its highest in four months, as global uncertainty over economic growth and tensions in Ukraine increased the metal’s safe-haven appeal. Gold for April delivery rose another $11.70 to $1,358.40 an ounce. A day earlier, gold scored its second-straight advance as worries over Russia’s standoff in Ukraine and fears of a slowdown in China drew buyers to the perceived safety of the precious metal. Investors are closely watching how long gold will sustain its rally until there is a dramatic drop in prices amid easing tensions in Ukraine. It is expected that as long as uncertainty and fear exists about the situation, gold should continue to see gains. Copper has also been in focus this week due to its recent poor performance. The commodity is by far the worst performer among all precious and base metals, with a drop of almost 10% this year. On Wednesday, high-grade copper for May delivery remained flat at $2.95 a pound.

Bitcoin Coming To Wall Street

New York financial authorities confirmed on Tuesday that they would soon begin accepting applications for virtual currency exchanges including those dealing in bitcoins, in a sign of regulators’ growing interest in the technology. Approved applications will ultimately have to adhere to a proposed regulatory framework which will be developed by the end of June. Financial regulators in the state started looking at the use of Bitcoin and other virtual currencies last year. News of the regulations comes following the fall of Tokyo-based Mt. Gox, previously the largest exchange for buying and selling bitcoins which was most likely due to a hacking attack and mismanagement. This further demonstrates the urgent need for stronger oversight of virtual currency exchanges, including robust standards for consumer protection, cyber security, and anti-money laundering compliance. The brokerage industry’s own watchdog, FINRA, has warned that the lure of a potential quick profit should not blind investors to the virtual currency’s significant risks.

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

World Watches The Situation In Ukraine Unfold

On 1 March 2014, the Russian parliament unanimously adopted a resolution to authorize the use of force in the Ukraine, if required, to protect Russians in the region. Ukrainians complained bitterly that their sovereignty was being undermined by the Russian occupation and officials issued a warning to the Russians that any military incursion would be tantamount to an act of war. The reigning Prime Minister of Ukraine, Arseniy Yatsenyuk. declared that his country would safeguard its sovereignty from Russian intervention. As such, the Ukrainian military has been put on full alert, for the protection and preservation of the integrity of Ukraine. The Ukrainian crisis has had an effect on the markets with traders rushing to buy gold as uncertainty looms in the days and weeks to come. For the full analysis by Banc De Binary Founder, Oren Laurent, read more…

Just A Minute!

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

Main Trading Events Of The Day: U.S. Core CPI m/m & Unemployment Claims @ 13.30 GMT

Earnings Reports: Groupon Inc. Earnings per share forecast: 2 cents. Release: Close of U.S. markets today. Wal-Mart Stores Inc. Earnings per share forecast: $1.65. Release: Before U.S. markets open today.

WHAT WE’RE WATCHING TODAY

Fed To Change Rate Guidance As Unemployment Falls

Federal Reserve policy makers backed away from their year-old commitment to consider raising interest rates when unemployment falls below 6.5 percent. With joblessness falling faster than expected even as other labour-market indicators show weakness, policy makers agreed it would soon be appropriate to revise their guidance about how long the era of record-low interest rates will remain, according to minutes of their January meeting. Several policy makers also said that in the absence of an appreciable change in the economic outlook, there should be a clear presumption in favour of continuing to trim the Fed’s bond purchases by $10 billion at each meeting. U.S. stocks closed lower on Wednesday after the minutes from the Federal Reserve’s policy setting meeting revealed little consensus about when short-term rates would begin to rise. A larger-than-expected drop in home construction in January also weighed on sentiment.

Facebook to Buy Messaging App WhatsApp for $19 Billion

Facebook Inc, the world’s largest social network has agreed to purchase mobile-messaging startup WhatsApp Inc. for up to $19 billion in cash and stock, making it the biggest Internet acquisition in more than a decade. WhatsApp has more than 450 million members, with 1 million users being added daily. WhatsApp, which would be the company’s biggest acquisition, competes with apps from Twitter Inc., Kik Interactive Inc. and Snapchat Inc., the photo-message startup that rebuffed a $3 billion Facebook bid last year. WhatsApp is also believed to have many users in emerging markets such as China and India.

Industry insiders were said to have been staggered by news of the acquisition of WhatsApp, seeing it as a sign of sheer “desperation” and arguing that the social networking giant has overpaid for the mobile-messaging start-up. They believe that Facebook is so worried that they are bleeding users that they are trying to get their user count up by buying companies that have users which is reminiscent of some of the strategies of the dotcom era.

Facebook investors were also initially unhappy with the astounding valuation the social media giant is paying for the California-based company, which basically values each WhatsApp user at about $42 a customer. After first tumbling more than 5%, Facebook’s shares recovered slightly and were off about 3% in after-hours trading.

Facebook’s purchase of WhatsApp is the company’s largest acquisition yet, dwarfing the $1 billion it paid for Instagram and highlighting its ambition to get a piece of the fast-growing mobile messaging market.

Gold Weakens As Dollar Recovers After Fed Minutes

Gold slipped on Thursday as the dollar firmed after minutes from a U.S. Federal Reserve policy meeting indicated support for continued tapering of its stimulus. The tapering, which highlights a recovery in the U.S. economy, will diminish gold’s investment appeal as a hedge against inflation. The metal sank to a six-month low on Dec. 31 on prospects for a global economic recovery. Gold hit reached $1,314.50 before slipping to $1,309.85, down $1.40. It crossed the psychological level of $1,300 this month, but gains have been capped at a 3-1/2 month high of $1,332.10 hit on Tuesday. According to analysts, this should correct a little because the rise has been too sharp.

That sums up Thursday’s highlights! Keep in touch with us via your favourite social media channels for up-to-the-minute news and information to help you with your trading. We hope you have a profitable day on the markets.

Just A Minute!

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

Main Trading Events Of The Day: Canadian Manufacturing Sales m/m @ 13.30 & U.S. Prelim UoM Consumer Sentiment @ 14.55 GMT

Earnings Reports: N/A

WHAT WE’RE WATCHING TODAY

China Stocks Head for Biggest Weekly Gain Since September; AIG Shares Rise

China’s stocks rose, with the benchmark stock gauge heading for its biggest weekly advance in five months. Consumer companies led gains, while financial shares retreated. Analysts say there’s optimism in the market after last week’s holidays and liquidity is sufficient. The consumer price index rose 2.5 percent from a year earlier. The producer-price index fell 1.6 percent. China’s economic data are distorted in January and February by the shifting timing of the week-long Lunar New Year holiday, which began on Jan. 31 this year. China may also announce January money supply and new loans data today.

Meanwhile, following yesterday’s earnings report, shares of American International Group (AIG) rose after the insurer topped Wall Street estimates for the quarter and announced a dividend hike and additional share buyback. Shares of AIG rose 0.3% to $49.72 on heavy volume after the firm reported a fourth-quarter profit of $1.34 a share, or after-tax operating income of $1.15 a share, on net premiums revenue of $8.03 billion. Analysts estimated earnings of 96 cents a share on revenue of $7.96 billion.

Gold Rises Boosted By Weak US Data But What Lies Ahead?

Gold seems to have been regaining favour with investors, rallying 5 percent over the past two weeks, and gains look set to continue in the near term driven by a strong technical picture, according to analysts. Gold has managed to break through and hold above some key resistance levels over the past few weeks. Gold held above $1,300 this week and looks set to post its biggest weekly gain since October as disappointing U.S. data raised concerns about the outlook for economic growth. In addition to technical factors, sentiment among long and short-term investors appears to be turning more positive. China is expected to remain the driving force behind global physical gold demand, maintaining its position as the world’s top consumer for the second year in a row. Indian demand could also surprise on the upside as it relaxes its import restrictions. However, market watchers remain divided over the prospects for the precious metal with some analysts forecasting gold to fall to $1,050 over the next 12 months. Taking these factors into consideration, the short-term drivers seem supportive for gold and the technical picture is also looking more optimistic with people looking to buy on dips, but overall, there still remains some negativity in the medium term as the U.S. economy is expected to recover and the dollar to rally.

Apple To Revamp Set-Top Box; Smartphone Food Apps On The Way

Apple is talking to media companies and pay TV distributors about launching a revamped Apple-branded TV set-top box in coming months. Previously, the company had been trying to licence TV programming for its own Internet-based TV service. In the current discussions, which involve at least two big media companies, Apple envisages working with cable companies, rather than competing against them. For programming, it would rely on cable providers to acquire programming rights from media companies, rather than acquire them on its own and may consider seeking some rights directly in the future. Apple is reportedly aiming to release the new set-top box as early as June.

Meanwhile, Taco Bell will start taking orders via smartphone later this year which will pave the way for other food vendors to follow suit with other heavyweights like McDonalds also reported to be experimenting. Taco Bell’s app will use your GPS location to determine when employees should start heating up your food. To ensure that your meal is actually hot, that will only happen once you’re nearing the pickup restaurant. It’s a clever idea and in a world where convenience and customisation are key. If you can get 10 million people to download your app, you’re putting a portal to Taco Bell in 10 million pockets. It’s a huge opportunity, hence we expect other food vendors to jump on the bandwagon.

That sums up today’s highlights! Keep in touch with all Friday’s events via Facebook, Twitter and Google+. We hope you have a profitable day on the markets. Have a great weekend - we’re back on Monday!

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