Tag Archives: Janet Yellen

Yellen’s Comments Send Gold Lower

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 PPI @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Yellen’s Comments Send Gold Lower

As Janet Yellen testified before the Senate Banking Committee yesterday, gold sank 1 percent in 10 minutes, taking the metal back below $1,300 for the first time in nearly a month. Rather than being the victim of a massive bearish trade, the metal seems to have was reacted to a slightly less dovish outlook from the Fed chair than some gold holders were expecting or hoping for. This could signal that higher rates will come sooner rather than later which is anti-inflationary, and presents competition for gold.

Several traders still noted the oddity of gold moving so quickly on comments that didn’t surprise many people. At 10:55 a.m. EDT, about 7,600 gold contract traded, which means that nearly $1 billion in nominal gold value changed hands in that minute. This boost in volume led to speculation that gold futures fell because someone “dumped” $2.3 billion worth of the futures. Other analysts however believe the explanation was simply down to Yellen’s comments which caused one trader to sell gold, the sale of which triggered stops around the $1,300 level.

Spot gold edged up slightly to $1,296.35 an ounce, after losing 3.3 percent in the last two sessions the metal’s biggest two-day loss since October. With the break below $1,300 an ounce and technical weakness, further losses for gold may be likely.

Japan: Demand Exceeds Supply for First Time Since 2008

Demand has overtaken supply in the Japan for the first time in six years, adding to inflationary pressure in the world’s third-biggest economy. The Bank of Japan’s measure swung to 0.6 percent in the first quarter from negative readings back as far as 2008. The change followed six straight quarters of economic growth that closed a shortfall between demand and supply that had put downward pressure on prices. BOJ Governor Haruhiko Kuroda has said he expects the elimination of this output gap, together with rising inflation expectations, to help drive consumer price gains toward the central bank’s 2 percent target. Whether this will actually lead the way to stable inflation, given lackluster growth in wages remains to be seen and companies are still cautious.

Stocks: Microsoft: Job Cuts Imminent

Microsoft is planning its biggest round of job cuts in five years after CEO Satya Nadella said last week that he was preparing to make sweeping changes at Microsoft. The reductions will probably be in engineering, marketing and areas of overlap with Nokia. The restructuring which may be unveiled as soon as this week may end up being the biggest in Microsoft history, topping the 5,800 jobs cut in 2009, according to sources. Nadella commented that Microsoft would have to become more focused and efficient as he issued his first company mission statement, calling for greater emphasis on mobile devices, cloud-computing and productivity software as consumers and businesses buy fewer personal computers to check e-mail, browse the Web and access data and software. Traders will be watching for news of Microsoft’s job cuts and the possibility of trading opportunities.

That sums up today’s highlights! Find us throughout the day on Facebook, Twitter, Google+ and LinkedIn for all the latest trading news. We hope you have a profitable day on the markets.

Yellen Prepares To Address On Financial Stability

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. Fed Chair Yellen Speaks @ 15.00 GMT

WHAT WE’RE WATCHING TODAY

Yellen Prepares To Address On Financial Stability

Federal Reserve Chairwoman Janet Yellen is preparing to discuss financial stability later today as market-watchers worry that the Fed’s exit from its easy monetary policy stance will may upset the markets. Yellen speaks today at the International Monetary Fund’s first annual central banking lecture and will then joins discussions with IMF current managing director Christine Lagarde. Stock markets have been range-bound with low volatility. Further concern has been targeted toward parts of the bond market, particularly on the corporate side. In her recent press conference, Yellen said that financial stability concerns are always on the table for policy makers but are not impacting on monetary policy in any major way at the moment. She stressed several times that the outlook was uncertain as some observers noted that Yellen’s focus on uncertainty was a message to buoyant financial markets that a little caution might be welcome. Fed officials are aware that ignoring risks to financial stability has its perils but focusing too much on it does as well. Fed Chair Yellen Speaks Today @ 13.00 GMT.

WTI Trades Near Three-Week Low

West Texas Intermediate traded close to the lowest price in three weeks before stockpile data that may signal the strength of fuel demand in the U.S. Futures were little changed in New York after declining 3 cents yesterday. U.S. crude inventories likely fell last week while gasoline supplies rose before data from the Energy Information Administration today. Fighting in Iraq has not yet spread to the south, home to more than three-quarters of its oil production so the markets are closely monitoring the political situation. WTI for August delivery was at $105.35 a barrel in electronic trading on the New York Mercantile Exchange, up 1 cent, at 2:52 p.m. Sydney time. The contract slid to $105.34 yesterday, the lowest close since June 11. The volume of all futures traded was about 54 percent below the 100-day average. Prices have gained 7 percent this year. Brent was steady in London and was 3 cents higher at $112.32 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $6.94 to WTI, compared with $6.95 yesterday.

Aussie Dollar On A Roll, But Will It Last?

The Australian dollar soared to eight-month highs this week, seemingly on a roll but questions are being raised as to whether it will last. The AUD has been on an upward trend since late January and has gained approx 6.5 percent against the U.S. dollar so far this year, making it the best performing major currency after the New Zealand dollar. Its strong performance, driven by a rise in risk appetite and firm demand for Australian bonds, has led some currency analysts to believe that parity with the U.S. dollar could be achieved by year-end. Yet others believe that its recent performance should not be taken as a sign that a move to the one-to-one level with the U.S. dollar is likely to come sooner rather than later. The Aussie dollar rose as high as $0.9504 on Tuesday after the Reserve Bank of Australia left interest rates unchanged and delivered as statement that was viewed as less dovish than anticipated. Data on Wednesday showed Australia’s May trade deficit at A$1.9 billion, compared with analyst expectations for a deficit of A$120 million. Recent data also shows consumer confidence in Australia has taken a hit from the May budget. The concern, according to economists, is that the fall in confidence will spill over into weaker retail sales and makes the economic outlook uncertain.

That sums up today’s highlights! Please keep checking into our Facebook, Twitter, Google+ and LinkedIn pages for all the latest daily trading news. We hope you have a profitable day on the markets.

Is There An End In Sight To The Six-Year Bull Run?

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

Is There An End In Sight To The Six-Year Bull Run?

Are stocks telling us that a bear market is coming? That’s the opinion of some analysts who point out that bear markets ‘start with a whimper or a bang’. When it starts with a bang, the first clue will be a major break in the market that no one can explain. That will eventually be followed by a correction at which point everyone will be aware that something bad has happened. Should this happen, indexes will fall by double digits, investors will panic, and stocks will nosedive. But when a bear market starts with a whimper, it confuses nearly everyone. A meandering, volatile market is frustrating. At first, bulls will be hopeful that the market will keep going up, but eventually, the market tops out and retreats. Typically, a market making new highs is a healthy sign. In a looming bear market, new highs on lower volume is a warning sign. Right now, the strongest case for the bulls is the Fed but in the history of the stock market, no institution has been able to prevent a bear market. What might cause the market to snap is not certain - it could be an economic event, a geopolitical crisis, or a spike in interest rates. If it happens, nearly everyone will realise the market is in trouble at which point everyone will attempt to sell at once. Is that crunch time getting closer? No one knows but some believe a bear market is inevitable sooner rather than later.

The U.S. stock market closed broadly lower yesterday, as investors turned cautious amid a sell-off of small and high-growth companies. The benchmark S&P 500 and Dow Jones Industrial Average retreated from record levels set on Tuesday. The S&P 500 finished 8.92 points, or 0.5% lower at 1,888.53. The Dow Jones Industrial Average broke its five-day winning streak and closed 101.47. points, or 0.6%, lower at 16,613.97. The Nasdaq Composite ended the day down 29.54 points, or 0.7%, at 4,100.63.

Dollar Holds Losses Before Yellen Speaks Today

With Federal Reserve Janet Yellen due to speak later today and expectations that the central bank will maintain stimulatory policies, the U.S. dollar managed to hold losses against the majority of its 16 major peers after touching its lowest in almost a week versus the yen yesterday. Yellen told Congress last week the economy needs support. A report showed Japan’s gross domestic product expanded at the fastest pace in 2 1/2 years, damping bets for additional Bank of Japan easing. The euro remained higher versus the pound before figures that may indicate growth accelerated in the eurozone. The dollar slipped 0.1 percent to 101.83 yen after touching 101.66, the lowest level since May 9. It traded at $1.3718 per euro from $1.3715.

WTI Drops From Three-Week High; Brent Remains Steady

West Texas Intermediate slid from a three-week high after government data showed crude inventories expanded as production increased to a 28-year peak in the U.S. Brent was steady in London. Futures fell as much as 0.5 percent in New York, the first drop in four days. Crude stockpiles rose to a near-record last week as output climbed to the highest rate since 1986. WTI for June delivery declined as much as 47 cents to $101.90 a barrel on the New York Mercantile Exchange reaching $102.11 at 3:15 p.m. Sydney time. The volume of all futures traded was about 19 percent below the 100-day average. Prices are up 3.8 percent this year. Brent for June settlement was 11 cents lower at $110.08 a barrel on the London-based ICE Futures Europe exchange.

That sums up today’s highlights! Catch up on all the latest news on Facebook, Google+,Twitter and LinkedIn. We hope you have a profitable day on the markets.

China: Trade Rises Unexpectedly But Analysts Express Caution

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

WHAT WE’RE WATCHING TODAY

China: Trade Rises Unexpectedly But Analysts Express Caution

China’s exports and imports unexpectedly rose in April, helping leaders halt a slowdown in the world’s second-biggest economy. Overseas shipments increased 0.9 percent from a year earlier while imports gained 0.8 percent, leaving a trade surplus of $18.46 billion. China stocks headed for the biggest gain in four weeks as the figures showed increased signs of improving global expansion. Export gains would reduce the urgency for Communist Party leaders to resort to larger-scale stimulus than railway spending and tax breaks, after first-quarter growth slowed to the weakest pace in six periods. The yuan, which is down about 2.8 percent this year against the U.S. dollar, reversed losses after the figures were revealed to advance 0.1 percent. The benchmark Shanghai Composite Index extended gains, rising 1.1 percent.

Analysts point out that while the numbers are positive, the key is that the momentum should be maintained. Some warn against reading too much into one month of data, especially as the country shifts towards domestic consumption and away from investment-led growth. There are also concerns the trade numbers, which are known to be volatile, could be distorted by fake flows of cash pouring into China. The trade figures do, however, provide valuable insight into the extent of impact to the economy in the rebalancing process.

Gold Drops Below $1,300 Following Yellen Comments; U.S. Stocks Fluctuate

Gold held below $1,300 an ounce after the biggest one-day drop in three weeks on speculation that the U.S. Federal Reserve will further reduce monetary stimulus as the economy recovers. Bullion for immediate delivery traded at $1,290.34 an ounce from $1,289.88 yesterday, when prices sank 1.4 percent, the most since April 15. Gold fell 28 percent in 2013 to end a 12-year rally, on expectations the Fed would scale back asset purchases. Chair Janet Yellen yesterday told U.S. lawmakers that the world’s largest economy still needs stimulus even as data supported the outlook for faster expansion this year. The central bank has announced cuts to bond-buying at each of the past four meetings. Gold has rallied 7.4 percent this year in part as tension in Ukraine spurred haven demand.

Meanwhile, U.S. stocks fluctuated as tech stocks tumbled amid Janet Yellen’s comments. The Standard & Poor’s 500 Index rose as optimism that the Federal Reserve will continue to support the U.S. economy overshadowed a drop in Internet stocks led by Yahoo! and Groupon. The S&P 500 gained 0.6 percent to 1,878.21 yesterday, rebounding after briefly dropping below its average trading level for the past 50 days. Nasdaq slipped 0.3 percent. The Dow Jones Industrial Average climbed 117.52 points to 16,518.54. About 7.1 billion shares changed hands on U.S. exchanges, 6.1 percent above the three-month average.

German Industrial Output Unexpectedly Falls As Growth Slows

German industrial output unexpectedly fell for the first time in five months in a sign that expansion in Europe’s largest economy is slowing. Production, adjusted for seasonal swings, declined 0.5 percent from February, when it gained a revised 0.6 percent. Economists predicted an increase of 0.2 percent. Production rose 3 percent in March from the previous year when adjusted for working days. Factory orders in March fell the most since November 2012 and the Bundesbank has warned that expansion will slow “noticeably” after a very strong first quarter. While the country benefits from ultra-low interest rates as it leads the euro-area recovery from its longest-ever recession, growth is threatened by risks including a slowdown in China and rising tension with Russia. Manufacturing declined 0.4 percent, while consumer-goods output rose 0.5 percent, and intermediate goods production slowed 0.9 percent.

That sums up today’s highlights! Keep in touch via Facebook, Twitter, Google+ and LinkedIn for all the latest trader news. We hope you have a profitable day on the markets.

Dollar Close To Recent Lows As Yellen Testimony Awaited

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: US Fed Chair Yellen Testifies @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Dollar Close To Recent Lows As Yellen Testimony Awaited

Janet Yellen’s appearance today in front of the Joint Economic Committee will be followed for any shifts in the Fed’s economic and policy outlook following the recent employment figures. Traders across the financial markets will be watching to see if she has a message that could alter the course for interest rates. The U.S. dollar languished close to six-month lows against a basket of major currencies today as investors braced for the possibility that dovish comments from Janet Yellen could further undermine the greenback. The dollar index sank nearly a half percent Tuesday and is now down nearly a full percent in the last week. The dollar was weaker across the board, falling against the euro, yen, sterling, Swiss franc and major emerging market currencies such as the Indian rupee and Turkish lira. The dollar index was at its lowest level since October 2012, and its lowest level against the pound since August 2009.

Frustration has been growing among some players at the dollar’s inability to move higher even after the payrolls report, as the Federal Reserve continues to scale back its bond-buying support. Market consensus seems to be forming on the view that the Fed is still a long way from raising interest rates even after it ends its quantitative easing program, which is expected later this year. Analysts expect the dollar to recover when there’s sign of inflation or a further dip in the unemployment rate.

Brent Edges Up On Fall In U.S. Crude Stocks & Ukraine Risks

Brent Crude edged higher above $107 per barrel today after an industry report showed U.S. crude stocks declined last week, while increasing geopolitical risks in Ukraine helped put a floor under prices. Crude inventories in the United States fell by 1.8 million barrels last week, going against analysts’ expectations for a 1.4-million-barrel gain. Investors now await confirmation of the API numbers from the U.S. Department of Energy’s Energy Information Administration, which releases its more closely watched data later on Wednesday. Brent crude rose 26 cents to $107.32 a barrel by 0352 GMT, after ending the previous session 66 cents lower. U.S. crude gained 60 cents to $100.10 after the contract had settled 2 cents higher. Heightening tensions in Ukraine and the possibility of the country slipping into civil war also helped lift oil markets, as traders weighed the risk of supply disruptions from Russia, the world’s biggest oil producer.

Twitter Drops Nearly 18% As Lock-Up Period Expires

Twitter dropped sharply on Tuesday as nearly 500 million shares from company insiders became eligible to be sold. The stock fell nearly 18 percent on record volume of more than 124 million shares to a fresh all-time low since their trading debut on Nov. 7. The lock-up agreement that expired this week applied to about 470 million shares, or 82 percent of Twitter’s equity. With the stock’s recent selloff, Twitter’s current market cap is at $19 billion. Tuesday’s reaction to Twitter’s lock-up expiry was in sharp contrast to that of Facebook in late 2012. Facebook shares jumped 13 percent on Nov. 14 that year, when its lock-up expiry of roughly 800 million shares did not trigger an immediate wave of insider selling. Last week, Twitter’s net loss grew by more than $100 million in the first quarter, though the company’s operating earnings and sales topped Street expectations. Monthly active users hit 255 million, with mobile MAUs making up 78 percent of the total.

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

Will Today’s FOMC Minutes Move The Markets?

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 FOMC Meeting Minutes @ 18.00 GMT

WHAT WE’RE WATCHING TODAY

Will Today’s FOMC Minutes Move The Markets?

The Fed is due to release minutes of its March 18-19 meeting today at which it reduced the monthly pace of bond buying by $10 billion to $55 billion. Whether they reveal anything new or just nuance, the minutes from the Fed’s last meeting will be a major highlight of the trading week. Traders are watching to see if the minutes take on a more hawkish tone, particularly after Fed Chair Janet Yellen said that the Fed could start raising short-term interest rates about six months after ending its bond-buying program, expected in the fall. The Fed dropped part of its statement that linked raising rates to an unemployment threshold of 6.5 percent. Unemployment was at 6.7 percent in March. FOMC minutes are known to move markets even when they really provide little new information.

The dollar was at $1.3708 per euro today after strengthening 0.3 percent last week to $1.3705. The yen added 0.2 percent to 103.08 per dollar, extending a 0.6 percent advance on April 4. It gained 0.2 percent to 141.30 per euro, following a 0.7 percent jump at the end of last week to 141.54. Stocks rose slightly Tuesday, with the Dow gaining 10 to 16,256 and the S&P 500 up 6 at 1,851. The Nasdaq rose 33 points or 0.8 percent, to 4,112.

FOMC Meeting Minutes @ 18.00 GMT

Dollar Down, Yen Up As BOJ Dampens Stimulus Hopes

The dollar hovered at three-week lows against major currencies today, having broken decisively lower as the yen squeezed higher and the euro gained a tailwind. The moves were sparked partly by yesterday’s comments from Bank of Japan Governor Haruhiko Kuroda who said there was no need for additional stimulus to escape years of debilitating deflation whilst adding that the world’s third-largest economy can ride out the impact of a sales tax rise. Recent remarks from European Central Bank officials have also suggested no urgency for any immediate policy action. The dollar fell more than 1 percent against the yen in its biggest one-day drop in over seven months to 101.55. It has since drifted back up to 101.91. The euro climbed as far as $1.3812, pulling further away from Friday’s trough of $1.3672. The dollar also slid on a raft of emerging market currencies where investors have been wagering massively on dollar strength that has not materialised, forcing a bailout of long positions. In contrast, the Japanese currency gained ground on the euro, the Australian dollar and many other currencies as well, as investors rushed to cover bearish positions.

China Commodity Demand Not Peaking

China’s economic deceleration has shaken commodity markets, however, according to the International Monetary Fund, its demand for commodities is a long way off peaking and does not mean that its rebalancing away from an investment-led economic model will lead to a decline in consumption of commodities. Observing growth trajectories in China, South Korea and Japan, the fund found that China’s per capita gross domestic product would need to double before that started to happen. Instead, the IMF points out that the composition of Chinese demand for commodities is likely to shift. As Beijing moves to shut down unprofitable steel factories, growth in demand for iron ore and copper should moderate. China is still importing iron ore at record levels but these imports are expected to grow at a slower pace from now on. Concerns over China demand partly explain why iron prices have fallen 12% since the start of 2014. By comparison, the fund said, Chinese demand for high-grade metals like aluminum is likely to prove more resilient in years ahead. The fund also anticipates other commodities will do well as incomes in China rise: high-protein foods and zinc. Losers could include rice, copper and eventually coal.

That sums up today’s highlights! 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 Thursday’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the markets:

Main Trading Events Of The Day: Several today including USD Core Durable Goods Orders m/m & Unemployment Claims @ 13.30 and Fed Chair Yellen Testifies @ 15.00 GMT

WHAT WE’RE WATCHING TODAY

Yellen Testifies As Weekly Jobless Claims Expected To Hold Steady

Yellen testifies before the Senate Banking Committee today with more focus expected to be on banking regulation and “too big to fail” institutions as well as the batch of bad housing data which appears to be signaling a more structural problem than just the weather effect. It is anticipated that Yellen will veer away from providing much more insight into what she thinks may be going on in the economy. The Fed has said it will consider altering short-term rates when unemployment reaches 6.5 percent - it was at 6.6 percent in January, hence there is now a problem in that it communicated a specific rate that might soon be overtaken. Fed Chair Yellen Testifies @ 15.00 GMT.

Besides Yellen’s testimony, markets will be watching durable goods orders and jobless claims, both at 13:30 GMT. American manufacturers have experienced a slowdown in orders over the past few months and the trend is likely to reflected in January’s report on durable goods. Analysts forecast a 2.5% drop in new orders for durable goods following a preliminary 4.2% decline in December.

Weekly jobless claims are forecast to hold steady at around 335,000. The number of people applying for jobless benefits has clung to a narrow range lately, suggesting little improvement or deterioration in the nation’s labour market.

The dollar was near a two-week high against a basket of its major peers before Fed Chair Yellen speaks today amid prospects the central bank will continue to scale down its bond purchases while gold extended a decline from the highest level in 17 weeks as U.S. housing data that beat estimates supported expectations the Federal Rerserve will keep to its plan to reduce stimulus.

Oil Prices Ease Ahead Of Yellen Testimony

Oil prices eased in Asian trade Thursday as investors await a testimony by the US central bank chief for fresh clues on the state of the world’s biggest economy. “Despite the fact we saw a bit of a rally last night, crude is really still within the range of the last couple of days,” said Ric Spooner, chief analyst at CMC Markets in Sydney. “There’s a chance we’ll see it lose a bit ground from here in the short term.”

New York’s main contract, West Texas Intermediate (WTI) for April delivery, was down 23 cents at $102.36 in mid-morning Asian trade, while Brent North Sea crude for April was 15 cents lower at $109.37. Equity markets as well as oil prices were boosted after Yellen’s inaugural testimony to House representatives on February 11 when she said the bank would continue its market-friendly, low-interest rate policies. The US Department of Energy’s weekly petroleum stockpiles report Wednesday showed commercial crude oil supplies rose only 100,000 barrels last week, one-eighth of what analysts expected.

Google Denies $10 Billion Bid For WhatsApp

Google has reportedly denied rumours that it approached WhatsApp for an acquisition before Facebook grasped the opportunity. It was rumoured that Google had offered a reported 10 billion dollars, almost half of Facebook’s 19 billion dollars for WhatsApp, according to reports. Although, there had not been any formal bid from Google, it doesn’t necessarily mean that the search giant wasn’t interested in a deal as media reports had earlier pointed out that WhatsApp was asking Google for 1 billion dollars. There were also indications that Google CEO, Larry Page met with WhatsApp co-founder and CEO Jan Koum in an attempt to convince him not to hook up with Facebook CEO Mark Zuckerberg. Usually, there’s no smoke without fire, so even if these ‘rumours’ were to a lesser or greater extent false, it will be interesting to observe Google’s moves towards other messaging apps in the market.

That sums up today’s highlights. Keep an eye on all upcoming important trading events via 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 what’s happening in the markets today:

Main Trading Events Of The Day: BOJ Press Conference, GBP CPY y/y @ 09.30 & EUR German ZEW Economic Sentiment @ 10.00 GMT

Earnings Reports: The Coca-Cola Company. Earnings per share forecast: 46 cents. Release: Before U.S. markets open today.

WHAT WE’RE WATCHING TODAY

Nikkei Jumps As Bank Of Japan Doubles Loan Programs

Following today’s earlier statement, the Bank of Japan has kept its broad monetary policy and assessment of the economy unchanged but also doubled the size of two soon-to-expire special lending programs in a move to encourage loan growth and support the world’s third-largest economy. The board voted unanimously to keep the pace of its monetary easing unchanged, as widely expected although it would double the scale of its programs lending to banks in order to stimulate loans and support the economy. The doubling of the lending facility is, however, according to some analysts, seen as a dovish signal that the BOJ is prepared to ease further and that it’s committed to keeping liquidity extremely loose. The yen weakened to as low as 102.74 against the dollar after the BOJ’s announcement and was trading at 102.72 at 2:46 p.m. in Tokyo, down 0.8 percent. The Topix index rose 2.8 percent.

Meanwhile, Asian stocks rose, with the regional benchmark index poised for a three-week high, whilst Chinese shares fell as the central bank drained liquidity from the financial system. Both the U.S. dollar and the Euro climbed higher against the yen. After briefly dipping, the U.S. dollar climbed to ¥102.57 and traded as high as ¥102.61 from around ¥101.98 just before the bank released its statement. The dollar bought ¥101.56 late Monday. The euro also jumped against the yen, buying ¥140.55 from around ¥139.50.

Forecasters Remain Bearish As Gold Extends Gains

Gold looks likely to extend gains to fresh three-month highs this week as mixed U.S. economic data encourages safe-haven buying though some warn the rally may be capped around $1,350. A U.S. data-heavy schedule this week may drive gold higher if releases including the closely-watched housing and inflation numbers are below forecasts and help weaken the U.S. dollar, though extreme weather conditions may distort the readings. Sentiment towards gold appears to have turned around and will continue to rise if this week’s big data dump continues to show mixed results. Mixed economic numbers compounded by the extreme weather mean that it’s unlikely that the U.S. Federal Reserve will cut monthly bond purchases beyond the current gradual pace. With Janet Yellen admitting that the economy clearly needs more work, more money printing will help gold’s position at $1,300 and beyond. Gold’s best forecasters are, however, still holding to their bearish forecasts for 2014 even after the metal posted its best start to a year since 1983. They say the rebound won’t last because higher prices will stifle purchases and the Federal Reserve will continue slowing stimulus as the economy strengthens.

What Awaits The Markets This Week?

With the Federal Reserve set to release the minutes from its January FOMC meeting on Wednesday, market participants will closely monitor them for any clues relating to the outlook and the future of quantitative easing. For those who rely on economic data to determine its next move, this is not an easy time. Two straight employment reports have shown weak gains in nonfarm payrolls (113,000 in January and a marginally adjusted 75,000 in December) but the extent to which bad weather adversely impacted those numbers is also a factor. The Committee will next meet in March with a broad range of data on the economy to look at, including another jobs report, although the February employment report could also be marred by weather conditions. The Fed’s minutes could consequently shed some light on exactly how much weakness the FOMC needs to see before it deviates from its course of tapering quantitative by $10 billion per month. The Fed is unlikely to deviate unless there is a material markdown of outlook. This could put a bid under the market, some traders say. The minutes, which are due for release on Wednesday, will shed light on the decision-making and debate that marked former Fed Chairman Ben Bernanke’s last meeting which was held on Jan. 28 and 29. The Fed’s next move will be announced on March 19, after the next FOMC meeting.

That sums up today’s highlights! Keep in touch for breaking financial news 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: USD Core Retail Sales m/m & Retail Sales m/m @ 13.30 GMT

Earnings Reports: AIG: Earnings per share forecast: 95 cents. Release: Close of U.S. markets today.

WHAT WE’RE WATCHING TODAY

Dollar Falls Before U.S. Retail Sales & Jobless Claims

The dollar headed for its biggest drop in more than a week versus the yen before today’s reports which are forecast to show that U.S. retail sales stalled. Winter weather probably took a bite out of January’s retail sales, while jobless claims data may also be affected. U.S. retail sales stagnated in January, according to economists, following a 0.2 percent gain the month before. Retail sales is one of the important data points economists are watching to see if weather is impacting the economy, or if it’s slowing down for other reasons. However, the report is likely to be inconclusive. Economists expect to see a 0.1 percent decline in headline retail sales. The number comes as another winter storm heads up the east coast, an event that could also impact on the next jobs report since this is the survey week for the February employment report. The last two jobs numbers were particularly poor, and even new Federal Reserve Chair Janet Yellen has said the weather may be to blame. She pointed out, however, that it is too soon to jump to conclusions during her first Congressional testimony as Fed chair on Tuesday. Yellen believes that the economy is in a sustainable economic recovery. As yet, recent weak employment reports haven’t been enough to sway the Federal Reserve from reducing the pace of its monthly stimulus program.

Commodities Rise to 2014 High But Analysts Remain Bearish

Commodities climbed to the highest since December as extreme weather fuelled supply concerns for crops and energy at a time of rising imports by China. Analysts believe this year’s gains will be short-lived. The driest January since 1954 seared crops in Brazil, the top sugar and coffee grower, while freezing weather across the U.S. damaged winter wheat and cut energy stockpiles as heating demand rose. China’s imports surged 10 percent in January, driven by crude oil, iron ore and record shipments of copper, customs data show, hence Chinese data is more bullish for the world economy. Overall though, whilst the cold weather in the United States, Asia and even Europe has recently boosted momentum, analysts don’t think prices can hold up once temperatures start to rise.

Google’s Glass Begins Trials With Virgin Atlantic As It Becomes World’s No. 2 Most Valuable Firm

Virgin Atlantic has just begun a six-week trial that will equip its staff at London’s Heathrow Airport with the eyewear gadgets in an effort to shuttle first and business class passengers more quickly through the airport and into a separate wing at Terminal 3 reserved for high-end travellers. The wireless eyeglass computers may allow Virgin Atlantic and other airlines to better collate data they have on their best customers and create a more personal, concierge-like service, in a similar way to the personal efforts most luxury hotels and resorts undertake for regular guests. Virgin may expand the use of Google Glass across its network, depending on the outcome of the London test. Meanwhile, Google has raced ahead of Exxon Mobil as the world’s No. 2 most valuable company, and is fast narrowing the gap on No. 1 Apple. The ability to collect lucrative data from its users and sell them to advertisers is turning Google into a money machine few companies can match. Google’s market value is now $389.6 pulling past Exxon Mobil at $389.3 billion.

That sums up Thursday’s highlights! Don’t forget to keep in touch with us throughout the day for updates via Facebook, Twitter, Google+ and our ‘must watch’ Ahead Of The Week videos. We hope you have a profitable day on the markets!

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