Tag Archives: NAsdaq

USD Off To Slower Start In August

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

WHAT WE’RE WATCHING TODAY

Dollar Gets Off To Slower Start In August

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

S&P 500 Sees Biggest Weekly Decline Since 2012

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

WTI Trades Near Six-Month Low Before Economic Data

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

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

Dollar Holds Longest Yen Gains Since 2005 Following U.S. GDP

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 Holds Longest Yen Gains Since 2005 Following U.S. GDP

There are clear signs that the U.S. economy is strengthening as the dollar headed for its biggest monthly gain versus the euro since February last year. The dollar has risen versus all except one of its 16 major counterparts in July as reports have shown gross domestic product rebounded, consumer confidence improved and durable goods orders increased. Economists predict that NFP data tomorrow will reveal that employers added more than 200,000 jobs for a sixth month. The dollar was little changed at $1.3396 per euro having advanced 2.2 percent this month. It appreciated to $1.3367 yesterday, the strongest since Nov. 12. The U.S. currency traded at 102.78 yen from 102.79 in New York, having risen for the previous nine trading days.

So far, the Fed has nevertheless given no signs of being in a hurry to raise interest rates. Yesterday, it delivered a slightly more upbeat assessment on the economy and scaled back its monthly bond-buying program by another $10 billion in a widely expected move. Traders expect markets to now take stock of the overnight moves and wait for the next batch of key data including U.S. non-farm payrolls tomorrow.

U.S. Stocks Higher As Fed Calms Rate-Hike Fears

U.S. stocks ended a choppy session slightly higher, as the Federal Reserve appeared to ease fears that it will start raising interest rates sooner than anticipated. Following yesterday’s FOMC meeting, the Fed said the economy is improving but emphasised that significant slack remains in the labour market. The central bank gave no hint of timing of the first rate hike and repeated that it expects that to come a considerable time after the end of its bond-buying program. The S&P 500 closed up less than a point at 1,970.08. The Dow Jones Industrial Average finished off session lows, but with a loss of 31.75 points to 16,880.36. The Nasdaq Composite added 20.20 points to 4,462.90. Tech stocks shone amid a buying frenzy in Twitter after the social media network’s results exceeded forecasts. Its shares leapt 22% as analysts moved up price targets in the wake of blowout results. European stocks closed mostly lower, while in other markets crude oil and gold both lost ground.

Gold Stays Below $1,300 On U.S. Economic Optimism

Gold held overnight losses to trade below $1,300 an ounce today and looked likely to extend declines to a fourth day as optimism over U.S. economic growth curbed safe-haven appetite for the metal. Spot gold was flat at $1,295.20 an ounce after dropping 0.3 percent in the previous session. If U.S. data continues to beat expectations, the metal will come under further long liquidation. According to some analysts, gold is poised to break support at $1,292 and fall further to $1,284, as indicated by its wave pattern and a Fibonacci projection analysis.

That sums up today’s highlights! Remember to keep in touch via our Facebook, Twitter, Google+ and LinkedIn pages for all the latest trading developments. We hope you have a profitable day on the markets.

Wall Street Ends Down After Record High

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

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

WHAT WE’RE WATCHING TODAY

Wall Street Ends Down After Record High

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

GBP Falls After Less Hawkish BOE

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

When The World Cup Is On, Stock Markets Go Quiet

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

Source: Bloomberg

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

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

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

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

WHAT WE’RE WATCHING TODAY

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

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

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

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

Dow & S&P End At Record Highs

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

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

Dollar Falls As Investors Await Fed Minutes

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 Falls As Investors Await Fed Minutes

The U.S. dollar fell against its major rivals on Monday as investors struggled to get a better perception of how the Fed views the current pace of economic growth. Fed Chair Janet Yellen said while the overall economy is on track to improve this year, recent weakness in the housing market has become a concern. The Fed is on track to finish its bond-buying program by the end of the year, setting up expectations for an eventual hike in interest rates. Higher interest rates are likely to boost the dollar because they make dollar-denominated assets more attractive. Nevertheless, the Fed has emphasised that it will keep rates near zero for a while after its bond purchases end. Minutes from its latest meeting, due this week, may shed light on how an eventual rate hike could be carried out. The dollar USDJPY traded at ¥101.41 versus ¥101.53 late Friday, rebounding from its intraday low of ¥101.11. Its intraday low was below its 200-day moving average of ¥101.25.

Could A Shift In Sentiment Be Underway For Stocks?

Traders are watching to see whether a shift in sentiment may be underway for Stocks. Nasdaq, at the heart of the market’s recent selling, found its footing late last week and built on it Monday, outperforming the Dow and S&P 500, gaining 0.9 percent to 4,125. Nasdaq has been pressured for weeks by selling in tech, social media, biotech and other momentum names, while the Dow and S&P hit new highs. The S&P and Dow, meanwhile were up 0.4 percent and 0.1 percent respectively. Apple and Google were both higher, with Apple closing above the psychological $600 level. Analysts noted the negative head and shoulders top that looked to be forming in the Nasdaq chart is less apparent as the Nasdaq trades higher. The worst performers in the S&P Monday were all defensive sectors, led by utilities. The sector was off 1.5 percent, while tech was the best performer, up 0.8 percent. In the Treasury market, Traders said the positive action in stocks weighed on Treasury prices. But the debate continued over whether Treasury yields are responding to a weakening economy or something else.

Gold Trades Below $1,300 On Lower Demand

Gold traded below $1,300 an ounce after its advance yesterday hurt purchases and as investors assessed the outlook for monetary stimulus in the U.S. Bullion for immediate delivery traded at $1,293.85 an ounce from $1,292.97 yesterday. The metal climbed to $1,305.48 yesterday on speculation that a newly elected government in India will relax import restrictions in the world’s second-largest consumer. In China, the top buyer, volumes for the benchmark spot contract in Shanghai fell to 11,419 kilograms yesterday, compared with a two-month high of 20,820 kilograms on April 24. Chinese purchases helped stem a price rout last year on record redemptions from bullion-backed exchange-traded products. Gold continues to trade in range as Ukraine uncertainty is still providing short-term support - but buying interest falls once prices get above $1,300. Euro weakness is also hurting gold.

That sums up today’s highlights! Keep in touch via Facebook, Twitter, Google+ and LinkedIn for all the latest trading events of the day.

We hope you have a profitable day on the markets.

Another Shutdown? Nasdaq Error Closes Options Market

Nasdaq OMX Group Inc. closed the sixth-largest U.S. options exchange more than five hours early last Friday because of a technical error, the latest malfunction to disrupt trading last week. The Nasdaq Options Market which handled 8.1 percent of American trading in September, was shut at 10:36 a.m. New York time and didn’t reopen because a “significant increase in order entries inhibited the system’s ability to accept orders and disseminate quotes” for some contracts, the company said. Trading continued on the 11 other U.S. venues, including two owned by New York-based Nasdaq. The mishap followed others earlier in the week. An Oct. 30 malfunction interrupted data transmission at Deutsche Boerse AG’s International Securities Exchange, while Nasdaq was unable to distribute prices for its benchmark stock indexes for almost an hour on Oct. 29. The breakdowns refocused concern that the distribution of trading over dozens of mostly automated venues has made U.S. securities markets fundamentally flawed. The company’s stock price dropped following the disruption, slumping 0.4 percent to $35.30, as the Bloomberg World Exchanges Index of 27 bourse operators fell less than 0.1 percent. Nasdaq has suffered several high-profile malfunctions, including its mishandling of Facebook Inc.’s initial public offering in May 2012 and an Aug. 22 outage in its pricing feed, which prompted a three-hour halt for thousands of U.S. stocks. The breakdown was also triggered by Nasdaq’s computers being unable to handle the amount of information being sent their way. The Nasdaq Options Market will open today (Nov. 4).

Nasdaq Data Interrupted… Again!

A halt in data feed that prevented prices for Nasdaq OMX Group Inc.’s benchmark U.S. stock indices from being published from almost an hour yesterday was due to human error, the company said.

The Nasdaq Composite Index and Nasdaq-100 Index were among the measures that stopped updating yesterday at 11:53 a.m. New York time and did not move again until 12:45 p.m. the same day. According to Nasdaq the system that disseminates data was fixed at 12:37 p.m. Some individual stocks listed by Nasdaq OMX, such as Apple Inc. (AAPL) and Google Inc. (GOOG), continued to trade during the outage.

“The disruption was caused by a human error performing an operational function which resulted in the incorrect delivery of data to the index distribution system,” Ryan Wells, Nasdaq spokesman, said in an e-mailed statement.

Although yesterday’s problem was confined to data dissemination alone without affecting any stocks, it is only the latest in a series of high-profiles glitches that have disrupted operations at the second-largest U.S. exchange operator for over a year. A software malfunction on 22nd August, in fact, at another Nasdaq OMX data feed stopped trading for thousands of U.S. stocks, which a software error at Nasdaq OMX delayed Facebook Inc.’s first day of trading on 18th of May last year.

Stocks Finish Strong in the US

All three major indices finished superbly by the end of trading on Friday and had one of the best weeks of the year overall. The Dow, S&P 500 and Nasdaq ascended substantially, will all three seeing increases between 2.1 and 2.8 per cent. Dow and Nasdaq were both nearing record highs on Thursday although there was no major facilitator to cause the soar. It seems that investors are expecting the stocks to reach new highs in the coming weeks and therefore continue to trust in the bull market’s sustainability. Friday’s momentary sell-off was due to worse-than-expected data, but did not impact hugely the largely successful week of strong performance by the three major indexes.

And The Rally Continues

As we predicted on Monday morning, the stock rally continued, with Dow closing at a record high and S&P 500 finishing just one per cent from its all-time high. On Monday night the Dow ended at 14,447.29, spearheaded by Boeing, the American multinational aerospace and defence corporation and Merck, the global healthcare leader. The S&P 500 rose by 5.04 points to reach 1,556.22 by closing time. The index which tracks the top 500 publicly traded businesses in the U.S was almost 0.5 per cent from its all-time high of 1,565.15, which it reached in 2007. Moreover, Nasdaq increased by 8.51 points to hit 3,252.87 by closing of trading on Monday.

Stocks Fall Following FED Powwow

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

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