Tag Archives: Russia/Ukraine Conflict

Ukraine Likely To Overshadow ECB Meeting

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: EU ECB Press Conference @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Ukraine Likely To Overshadow ECB Meeting

The crisis in Ukraine along with a hesitant recovery in Europe will most probably overshadow today’s European Central Bank meeting. Economists say the monetary authority for the member states who use the Euro will look to reassure markets that it is ready to add more stimulus measures if the economy takes a turn for the worse. It recently approved a major package of measures including a cut in the main interest rate to a record low 0.15 percent and an offer of more extra-cheap credit to banks and is waiting to see how those work. If further measures are deemed necessary in the future, analysts say the bank could decide to purchase large amounts of financial assets such as government bonds in the open market, a step which can drive rates down further and add newly created money to the economy but the bank is only expected to use it if its current efforts don’t work as expected. One risk factor is a sudden shock to business and investor confidence if the conflict between Russia and Ukraine escalates which could lead the EU and United States to impose new sanctions on Russia, disrupting trade. Uncertainty over what the impact could be on the global economy and markets could make businesses hold off on investing and consumers on spending. Low inflation is another worry for the ECB, at only 0.4 percent in the year to July. ECB President Mario Draghi has indicated that asset purchases are possible in the future and is one of the reasons why the euro has been in retreat over the past couple of months. ECB Press Conference is due today @ 12.30 GMT.

German Industry Output Grows Less Than Expected On Russia

German industrial output grew less than forecast in June as Europe’s largest economy came under pressure from political tensions with Russia. Production, adjusted for seasonal swings, rose 0.3 percent from May, when it declined a revised 1.7 percent. While that’s the first increase in four months, economists predicted a gain of 1.2 percent. Production fell 0.5 percent in June from the previous year when adjusted for working days. The European Union agreed last week on its widest-ranging sanctions yet over Russia’s backing of rebels in eastern Ukraine and the Bundesbank has cited geopolitical tensions as contributing to a probable stagnation of the economy in the second quarter. Factory orders fell the most in more than 2 1/2 years in June and sentiment surveys have plunged in Germany, Russia’s biggest trading partner in Europe. There is pessimism in the markets and it remains to be seen whether this pessimism will become persistent.

Australian Jobless Rate Tops U.S. First Time Since 2007

Australia’s jobless rate jumped to a 12 year high in July, overtaking the U.S. level for the first time since 2007 while sending the local currency falling. The unemployment rate rose to 6.4 percent from 6 percent according to the statistics bureau in Sydney, versus estimates for unemployment to hold steady. The number of people employed fell by 300. Australia appears to be losing its developed-world-beating status as the mining investment boom that powered it through the global financial crisis wanes. The number of full-time jobs increased by 14,500 in July, and part-time employment fell 14,800, today’s report showed. Australia’s participation rate, a measure of the labour force in proportion to the population, climbed to 64.8 percent in July from 64.7 percent a month earlier. The Australian dollar was trading at 92.87 U.S. cents at from 93.43 cents before the data were released.

That sums up today’s highlights! Don’t forget you can find us throughout the day on the social media platforms delivering u-to-the-minute news for traders. We hope you have a profitable day on the markets.

Investors Look To U.S. On Europe Concerns

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. Pending Home Sales @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Investors Look To U.S. On Europe Concerns

As the prospect of tougher sanctions against Russia impacts on confidence in Europe, investors will be looking to the United States and China to underpin the global economy. Wednesday’s U.S. GDP reading and jobs data on Friday will help markets assess the strength of the economy’s rebound and the speed of the Federal Reserve’s return to more conventional monetary policy. In Europe, the downing of a Malaysia Airlines airliner over the Ukraine has left countries such as Germany with little choice but to change their long-passive stance and impose tougher sanctions on Moscow. European Union ambassadors are expected to meet early this week to finalise sanctions that could include closing EU capital markets to state-owned Russian banks, placing an embargo on arms sales and restricting supply of energy technology. Globally, such sanctions would hurt Europe hardest, where Russia does most trade, compounding economic problems for Russia and throughout the region. The International Monetary Fund has already flagged the ‘chilling effect’ on investment in Russia of sanctions as it pared back its forecast for global economic growth last week. Confidence amongst businesses in Germany, which accounts for more than one quarter of all exports across the European Union, has dipped further since the plane crash. The crisis comes at a delicate moment for the 18 countries using the euro, where a fledgling recovery is losing pace. Investors will get a snapshot of the bloc’s inflation rate, which has sunk well below the European Central Bank’s target on Thursday.

Dollar Index Holds Close To Six Month Peak

The U.S. dollar hovered near six month highs against a basket of major currencies on Monday, holding onto solid gains made last week as investors turned bearish on the euro. This was ahead of key U.S. economic data later this week and a U.S. Federal Reserve meeting ending on Wednesday which market-watchers believe is likely to culminate in the same dovish message from Chair Janet Yellen.

The Commerce Department is expected to report on Wednesday that the economy grew at a 3.2 percent annual pace in the second quarter, after it shrank 2.9 percent in the previous quarter. On Friday, the Labor Department’s non-farm payrolls are expected to show a rise of 231,000 in July after they increased 288,000 in June. The jobless rate is expected to hold steady at 6.1 percent. Yellen said this month that the Fed could raise rates sooner than initially expected if labour markets continued to improve. Still, most economists expect the U.S. central bank to start raising interest rates in the second half of 2015. The dollar index was steady at 81.045, after it peaked at 81.084 on Friday, a high not seen since early February. So far this month, it has rallied around 1.6 percent, on track for its best monthly gain since January. Against its Japanese counterpart, the dollar was steady at 101.81 yen.

WTI Crude Declines In Advance Of U.S. Data

West Texas Intermediate crude fell for the fourth time in five days amid speculation that forthcoming economic data may signal a slowdown in growth in the U.S. Brent also dropped in London. Futures declined as much as 0.6 percent in New York. A preliminary index of U.S. service industries is forecast at 59.8 for July, the lowest level in three months. The Federal Reserve is scheduled to review monetary policy at a two-day meeting starting tomorrow. WTI for September delivery fell as much as 59 cents to $101.50 a barrel on the New York Mercantile Exchange to $101.59. The contract gained 2 cents to $102.09 on July 25. The volume of all futures traded was about 18 percent below the 100-day average. Prices are down 3.6 percent in July, the most in eight months. Brent for September settlement lost as much as 60 cents, or 0.5 percent, to $107.79 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $6.29 to WTI. The spread closed at $6.30 on July 25, the widest since July 7.

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

Will The Fed Jolt The Markets This Week?

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

Main Trading Event Of The Day: US Industrial Production @ 13.15 GMT

WHAT WE’RE WATCHING TODAY

Will The Fed Jolt The Markets This Week?

The Federal Reserve is expected to announce another $10 billion monthly reduction in quantitative easing in this week’s FOMC statement with the focus being on the Fed’s economic assessment, which could end up realigning investor expectations about when the Fed is likely to hike rates. In its last statement, the FOMC noted that growth in economic activity had picked up after having slowed sharply during the winter, but added that the labour market indicators were mixed and the unemployment rate remained elevated. However, the outlook has improved with the last two employment reports showing monthly non-farm payrolls growth of 282,000 and 217,000. And after a severely weak first quarter, several economists are looking forward to Q2 GDP growth around 4 percent. While the Fed is unlikely to alter its tapering plans or tweak its forward guidance, its new economic projections could still prompt speculation that the first interest rate hike may come earlier than mid-2015. Analysts are concerned that these new Fed jitters could crop up just as the market is running into geopolitical concerns surrounding the situation in Iraq and its impact on crude oil.

Asia Stocks Lower As Yen Gains On Iraq Conflict

Japanese stocks fell today as concerns over Iraq resulted in a stronger yen. The escalating conflict in Iraq continued to pressure market sentiment, pushing the cost of oil higher and sending investors toward the yen, Asia’s safe-haven currency. The yen edged a touch higher in Asian trade, with the U.S. dollar last at ¥101.84, compared with ¥102.04 on Friday. The stronger yen translated into falls for the Nikkei Average which was last down 0.7%. Australia’s S&P/ASX 200 lost 0.2%, as mining stocks dropped amid declining prices for spot iron ore, which fell 0.7% on Friday to a 21-month low. Concerns over the use of iron to finance deals and allegations of fraud involving commodities stored in China continue to rattle the market. In China, markets were mixed with Hong Kong’s Hang Seng Index down 0.2% and the Shanghai Composite was flat. Trading got off to a quiet start today, ahead of the U.S. Federal Reserve’s upcoming policy meeting. Scheduled to conclude on Wednesday, the meeting will provide a monetary-policy update for the world’s largest economy.

Russia/Ukraine Gas Deadline Passes As Talks Fail

A deadline for Ukraine to pay Russia its gas bill passed today after talks between the two sides failed to reach agreement. Russia will now switch to an advance payment system for supplying its eastern European neighbor, meaning that gas resources which also supply parts of wider Europe could potentially be shut off at any point. Russia has previously said that Kiev owes $1.95 billion for gas that has already been delivered. Under previous President Viktor Yanukovych, Ukraine had been paying a reduced price for the amount of gas that it was buying from Russia. However, after fierce street battles, a change of government in Kiev and the annexation of Crimea by Russia, Moscow ramped up the prices it charged to Ukraine. After several rounds of talks, with a representative from the European Union trying to help both sides reach a compromise, no clear solution has been found.

That sums up today’s highlights! Stay in touch throughout the day via our social media channels for all the latest market updates. We hope you have a profitable day on the markets.

UK Retail Sales Show Easter Rebound

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: GBP Retail Sales m/m @ 08.30 GMT

WHAT WE’RE WATCHING TODAY

As UK Retail Sales Show Easter Rebound, Will Carney Reconsider Policy?

UK retail sales is set for release early today. Data from the Confederation of British Industry shows that retail sales bounced back this month after a weak March, helped by sales from a later than usual Easter. With the current economic situation in the UK looking up, an upside surprise could raise expectations of policy tightening, and in turn, the strength of the sterling. Twelve months ago, the International Monetary Fund announced a UK growth forecast of 1.5% for 2014. At the beginning of this month, the IMF revised its estimate to 2.9% in 2014, making the UK the fastest growing economy in the G7. Data releases have compounded improving expectations, with production, trade balance and unemployment data all beating forecasts over the past two to three weeks, and the market is eagerly anticipating a potential near term interest rate hike. The latest MPC meeting minutes dampened these expectations somewhat, but if data continues to impress the BoE would likely have no choice than to consider some sort of policy tightening. For this reason, the market is watching the UK headline releases with a renewed focus.

Asian Shares & U.S. Dollar Struggle As Ukraine Tensions Escalate

Asian stocks struggled today, with fears of an escalating Ukraine crisis overshadowing upbeat U.S. economic data and U.S. tech shares. MSCI’s broadest index of Asia-Pacific shares outside Japan erased early modest gains and fell 0.3 percent. Japan’s Nikkei stock on the other hand, added 0.5 percent in choppy trade, after opening solidly lower amid disappointment over a failed attempt to reach a U.S.-Japan trade pact. On Wall Street overnight, stocks managed to shrug off the rising Ukraine tensions after Apple and Facebook posted upbeat results on Wednesday and U.S. economic data suggested that growth picked up pace in the second quarter. While brighter U.S. stocks and upbeat data supported the greenback, it still fell against a basket of major currencies, with the dollar index edging down to 79.760. But the U.S. dollar took back some lost ground against the yen, adding about 0.1 percent to 102.42 yen, while the euro also rose 0.1 percent against its Japanese counterpart to 141.65 yen. Against the dollar, the euro was steady on the day at $1.3832, despite comments from European Central Bank President Mario Draghi repeating recent concerns about euro strength and the ECB’s willingness to launch a “broad-based asset purchase program” if low inflation become entrenched.

Facebook’s Success In Mobile Continues To Soar

Facebook reported on Wednesday that it had made $2.5 billion in revenue in the previous three months and that it now has almost half the world’s Internet population logging in at least once a month. More than a billion people access the site monthly via mobile devices. The company is also doing better than expected when it comes to making money from mobile ads. For now, at least, its mobile ad business seems immune to the seasonal shifts in its desktop ad sales. The growth of mobile advertising has been explosive. Traders take note!

That sums up Friday’s highlights! Keep up to date with our regular posts on Facebook, Twitter, Google+ & LinkedIn today and over the weekend!

We hope you have a profitable day on the markets.

U.S. Building Permits: Set To Rise?

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 Building Permits @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

U.S. Building Permits: Set To Rise?

With Building Permits data expected later today, investors are anticipating numbers that will show American housing and industrial activity increased. European stock-index futures rose, after equities fell yesterday to a three-week low, while Asian shares climbed. The Stoxx Europe 600 Index also dropped 1 percent yesterday as Ukraine accused Russia of deploying troops inside its territory. Reports are expected to show housing starts rebounded to a 970,000 annualised pace in March, the first increase in four months, from a 907,000 rate in the previous month, according economists at Bloomberg. Separate data may show industrial production increased in March. Also today, Federal Reserve Chair Janet Yellen will address the Economic Club of New York after the close of European markets while the U.S. central bank will release its economic survey known as the Beige Book.

USD Building Permits Today @ 12.30 GMT

Gold Extends Decline On Prospects For Further Fed Tapering

Gold retreated once again, extending the biggest drop in three weeks, on prospects for further cuts to the Federal Reserve’s stimulus program as the U.S economy shows signs of recovery. Gold traded at $1,300.31 slumping 1.9 percent yesterday, the most since March 24. The precious metal ended a 12-year bull run in 2013 on expectations that the Fed would cut stimulus as the largest economy recovered. Bullion has rebounded 8.2 percent this year as unrest in Ukraine spurred haven demand. In an escalation of the conflict, Ukrainian troops retook state buildings from armed pro-Russia activists in the eastern Donetsk region yesterday as Russia warned of a civil war.

Twitter Shares Take Flight After Key Hire, Acquisition

Shares of Twitter closed up nearly 12 percent Tuesday after the company said it was buying Gnip, a start-up that it has worked closely with. The company also announced a key hire, Daniel Graf from Google, who ran Google Maps. Graf will be vice president of consumer products. Buying Gnip shows that Twitter is investing more heavily in enterprise services. Gnip is one of the few companies that has access to Twitter’s “Firehose,” meaning all the data generated by millions of tweets, every day, in real time. The company then mines the data for trends or information that might be useful to other companies. The buyout means the two companies will have a much closer relationship and signals where the company sees its strategy going forward.

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

Gold Slips From 3-Week High But Will It Head Back Up?

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: Several today including EUR German ZEW Economic Sentiment 9.00, USD Core CPI m/m @ 12.30 & Fed Chair Yellen Speaks @ 12.45 GMT

WHAT WE’RE WATCHING TODAY

Gold Slips From 3-Week High But Will It Head Back Up?

Gold declined today from a three-week high as gains in equities and strong U.S. retail sales data offset safe-haven bids that were driven by heightened tensions in Ukraine. Bullion for immediate delivery fell 0.5 percent to $1,321.31 an ounce after reaching $1,331.20 yesterday, the highest since March 24. While gold benefited from the escalation in tension between Russia and the Ukraine, upbeat U.S. economic data has put a dampener on the safe-haven rally. Nevertheless, opinions still vary as to what lies ahead for the precious metal. Some traders have warned that the gains from safe-haven bids could quickly dissipate when the Ukraine crisis is resolved while others expect gold to shine even brighter as the situation in Ukraine grows more volatile. With the Fed reiterating its commitment to improving the labour market, they expect the recent rally in gold to continue.

Generally, geopolitical tensions tend to be good for gold, given the metal’s use as a safe-haven asset. But that’s not the only catalyst traders are looking at. Gold has also been buoyed by falling interest rates over the course of the month, which stems the attraction of bonds when they are compared with non-yield-bearing assets like gold. The recent decline in stocks has not hurt either. With relations between Russia and the West at their worst since the Cold War after Moscow annexed Crimea from Ukraine, traders will be closely scrutinising movements in the price of gold.

Dollar Nudges Higher After Positive US Retail Sales Data

The dollar nudged higher versus a basket of major currencies on today after U.S. retail sales data signaled a brighter outlook for the U.S. economy. U.S. retail sales recorded their largest gain in one and a half years in March, the latest suggesting growth is on course to spring back in the second quarter after an unusually severe winter. The dollar index edged up 0.1 percent to 79.791, holding above Monday’s low of 79.562. Against the yen, the dollar edged up 0.1 percent to 101.91 yen, staying above a three-week low of 101.32 yen set on Friday on trading platform EBS. Some caution over tensions in Ukraine may be helping to temper the dollar’s gains against the yen. Since early February, the dollar has mostly traded in a range of roughly 101 yen to 103 yen, although it spent some time above 103 yen from early to mid-March and also in late March to early April.

Rio Tinto Produces Record Iron-Ore Output as Global Supply Gains

Rio Tinto Group, the world’s second-largest mining company, said first-quarter iron ore production rose to a record, up 8 percent to 52.3 million metric tons from 48.3 million tons a year earlier. At the same time as reining in spending and cutting costs companywide, the company has been driving an expansion of Rio’s iron-ore unit, the biggest contributor to earnings. Prices plunged into a bear market during the quarter as inventories ballooned to the highest ever in China. The stock advanced 1.1 percent to A$63.97 in Sydney trading. The benchmark S&P/200 Index gained 0.4 percent. Rio Tinto has started the year with a series of performance records as it continues to drive productivity gains across its operations, presenting possible opportunities for traders.

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

U.S Retail Sales Increase Anticipated

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 Core Retail Sales @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

U.S Retail Sales Increase Anticipated

Weekly surveys have suggested some improvement during the month, alongside firm consumer confidence, with sales at U.S. retailers jumping 0.9 percent in March, the biggest gain since September 2012, according to Bloomberg. An increase of 0.5% in retail sales excluding autos is forecast. Analysts say that the severe winter weather depressed consumer spending in recent months and that pent-up demand has been slow to show up in the data.

Stocks Decline Amid Wall St Gloom & Ukraine Tensions

Asian shares declined early today after a gloomy week on Wall Street and tensions in Ukraine sapped investors’ appetite for risk, which helped underpin the safe-haven yen. The glum sentiment is set to carry through to Europe with Britain’s FTSE 100 expected to open about 0.6 percent lower, Germany’s DAX to start down 0.9 percent, and France’s CAC 40 off 0.8 percent. Ukraine gave pro-Russian separatists a Monday morning deadline to disarm or face a “full-scale anti-terrorist operation” by its armed forces, raising the risk of a military confrontation with Moscow. European Union foreign ministers will hold talks later on Monday about tougher sanctions against Russia. MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.5 percent, pulling further away from five-month highs hit on Thursday. Japan’s Nikkei stock average briefly turned positive during Friday’s session, but ended down 0.4 percent at a six-month closing low. The Nikkei stumbled 7.3 percent last week, its biggest weekly fall since March 2011. The Nasdaq closed below the 4,000 mark for the first time since early February as investors bailed out of high-flying technology and biotech shares. Investors are wary that Wall Street’s rout may continue.

Data Influx From China Awaited

Important data from China, the world’s second-largest economy is likely to be a key focus for market players this week, with first-quarter growth domestic product (GDP), March retail sales, industrial output and fixed asset investment (FAI) set to be released on Wednesday. GDP is expected to rise 7.3 percent, which would mark China’s slowest pace of growth since 2009 and come in well below the 7.7 percent reading in the final quarter of 2013. However, the government is unlikely to be taking any short-term easing measures to combat economic volatility as it did in 2009 since they are less efficient than natural market forces in boosting growth.

That sums up today’s highlights! Stay in touch with us throughout the day for up-to-date news and important trading information. You can find us on Facebook, Twitter, Google+ and LinkedIn.

We hope you have a profitable day on the markets.

Fed Outlook: Geopolitical Concerns, Rates Set To Rise

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: Several today including USD FOMC Statement @ 18.00 GMT & GBP Annual Budget Release @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Fed Outlook: Geopolitical Concerns, Rates Could Rise At Turn Of The Year

Janet Yellen will chair the FOMC today with wide agreement on Wall Street over the outlook for policy this year and a forecast for stronger U.S. growth this year and next. There are some divisions over what happens to Federal Reserve policy in 2015 with a cloud of geopolitical concern hanging over the outlook but most analysts see the Fed tapering at the meeting today and at each of the remaining meetings this year. On average, analysts see the Fed tapering by around $10 billion at each meeting. The Fed currently is purchasing $65 billion in assets every month to try and drive down interest rates and stimulate the economy. It has signaled it would reduce or taper its purchases by $10 billion at each meeting this year, which would effectively end its purchase program by December. However, investors pricing in a federal funds rate hike in mid-2015 could get caught off guard, according to former Federal Reserve Governor, Robert Heller. Heller believes that markets will force the Fed to tighten a little bit earlier than that, probably around the turn of the year as we approach 2015, which is around the time that the tapering operation should be finished. The Federal Reserve has kept its benchmark interest rate near zero since 2008, when a global financial crisis that plunged financial markets into turmoil. As the Fed now unwinds its massive stimulus program and the U.S. economy recovers, markets anticipate an interest rate increase to follow not too long after the end of tapering. According to Heller, as investors become more become more bullish about the domestic recovery, yields on U.S. government bonds will be pushed higher, encouraging the Fed to follow suit. Other factors being taken into consideration are the recent weak U.S. economic data due to extreme weather conditions and new economic risks on the horizon, particularly China and Ukraine. Nevertheless, the general feeling is that Wall Street is reasonably comfortable with its outlook for Fed policy.

FOMC Statement/Press Conference @ 18.00 GMT

UK Budget 2014: Osborne Supporting A Resilient Economy

George Osborne will set out his plans to support a “resilient” economy in today’s Budget, which will be focused on boosting economic security and aspiration. The budget comes against a backdrop of a strengthening economic recovery, with unemployment and inflation falling and growth this year projected to be the among the strongest of any Western economy. Business groups have forecast that the UK’s total economic output will exceed its pre-recession peak in the second quarter of 2014 after the economy grew by 1.9% in 2013. Osborne is expected to address the UK’s historic economic weaknesses, particularly the need to increase manufacturing output and improve the UK’s balance of payments by boosting exports. He is also expected the chancellor to unveil schemes, incentives and tax breaks for some businesses. Alongside details of proposed tax and spending changes, Osborne will announce the Office for Budget Responsibility’s latest forecasts for economic growth and government borrowing for the years ahead. Deficit reduction remains his number one priority, with the ultimate goal of delivering an annual budget surplus before 2020.

Stocks: Google To Launch New Smartwatch Platform

Google announced earlier this week that smartwatches based on its Android mobile software will be available later this year, enlisting a variety of partners including Samsung Electronics, LG Electronics and Intel, signaling the company’s intent to play a leading role in what could be the next big computing market. Android Wear will allow people to speak into their watches to check sports scores, control music, send replies to text messages and even open their home garages. By aligning itself with a broad spectrum of partners to develop the smartwatches, Google is hoping to replicate the success that helped make its free Android software the most popular smartphone operating system, analysts said. Many believe wearable computers represent the next big shift in technology. More than 130 million smart wearable devices are predicted to ship by 2018.

That sums up today’s highlights! It’s a busy day on the markets so make sure you keep up to date with all the events via our Facebook, Twitter, Google+ and LinkedIn pages.

We hope you have a profitable day on the markets!

Just A Minute!

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

Main Trading Events Of The Day: EUR German ZEW Economic Sentiment @ 10.00; USD Building Permits @ 12.30; USD Core CPI m/m @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

U.S. Markets Look To German Stocks As German ZEW Economic Sentiment Awaited

Markets around the world have been becoming more jittery by the Russia/Ukraine crisis and the possibility of slowing economic growth in China. The situation is having a profound impact on U.S. markets with traders up and down Wall Street pointing to a renewed sense of risk aversion and questioning whether or not this is the beginning of that long-awaited correction for U.S. stocks. Slowing growth in China and worries about Russia’s tense relationship with Ukraine continue to fester but many traders have been paying even more attention to what’s happening in continental Europe for signs of what’s ahead for U.S. stocks. In particular, they are looking at Germany’s stock market which has relatively close economic ties to Russia. The two are trading partners, so weakness in Russia’s markets will reverberate through Germany’s markets to a certain degree. In turn, Germany is an important trading partner with the U.S. and there is a very high correlation between the value of the S&P 500 and Germany’s DAX stock index. In other words, the direction of both indexes seems to track each other fairly closely, hence many traders are also keeping a close eye market developments in Germany. While there has been selling pressure on U.S. stocks, some traders note that there isn’t a sense of panic selling. They also note that the current downside pressure isn’t a result of a massive flood of sell orders hitting the market. Rather, it’s been a lack of any real buy orders. With stocks near record highs, caution is still the prevailing sentiment. However, the trading relationship between German and American stocks is perhaps one reason why some traders are taking some profits just in case the global geopolitical or economic situation takes a turn for the worse.

The importance of the German market is once again highlighted in today’s German ZEW Economic Sentiment @ 10.00 GMT. Economic expectations in the euro zone declined in February by 5.4 points to 68.5. Analysts had expected a higher reading of 73.9. The decline in sentiment may attributed to concerns about U.S. economic recovery, and market volatility in emerging markets. Despite the relatively weak reading, ZEW President Clemens Fuest believes this decline in economic expectations is a temporary setback, since the majority of surveyed financial market experts remain optimistic. A further decline to 67.3 is expected.

Markets Eye Housing Data & FOMC For Market Buzz

Economic data and the Federal Reserve are expected to receive most of Wall Street’s attention this week with the big question being whether we are we looking at ongoing weather-related data, or if we are likely to see incremental improvement. Traders will of course be keeping their eyes on the Ukraine but it may come off the trader screen for the next few days, as we head to the FOMC on Wednesday. Reports scheduled for release include the consumer price index, typically scrutinised by analysts and investors for any sign of inflation, along with housing starts and building permits, all for February. The report, along with one on mortgage applications on Wednesday and existing home sales on Thursday, should give investors a clearer view on the health of the housing sector, an important piece of the U.S. economy. The expectations there a little stronger than they have been with the addition of 175,000 jobs in February and separately, a 0.3 percent rise in retail sales last month. The economic reports should begin to answer whether equity investors made the right call in writing off a large number of economic reports as being adversely affected by the weather. On Monday, stocks rallied, with the Dow rebounding from a five-day losing streak, as voting in Crimea passed without violence and after economic report had U.S. manufacturing output jumping the most in six months.

Apple Favorite Brand In Emerging Markets

Apple is the most desirable mobile-phone brand among inhabitants of emerging markets, according to a report. In a study conducted this year, Apple edged out Samsung Electronics, which was the leader in a separate survey last year. Samsung saw a slight decline in its share of developing-market consumers who favour its phones from 32 percent to 29 percent while Apple’s share jumped dramatically from 21 percent to where Samsung was last year. The brand halo for Apple is a good thing, but it won’t help the company overtake Samsung in sales, at least not immediately. Samsung Electronics is the world’s largest maker of smartphones partly because it makes low-margin, cheap handsets in addition to Galaxy products. The bright side for Apple is that the new emerging middle classes may switch to iPhones when they can afford them.

That sums up today’s highlights! Keep an eye on the markets today for important data releases via our Facebook, Twitter, Google+ and LinkedIn pages. 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.