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: N/A. U.S. markets closed today due to holiday.
Earnings Reports: Coca Cola Co. coming up tomorrow.
WHAT WE’RE WATCHING TODAY
Dollar Falls; U.K. Pound Climbs amid Increasing House Prices
The dollar lost ground against most major rivals on Friday amid mixed U.S. data on industrial production and consumer sentiment. Investors began the year expecting the economy to accelerate, but data has disappointed to the downside, with weather being a key factor. Now investors are pondering over whether to downgrade their expectations or muddle through what could just be a soft patch that eases off in the spring. The currency market’s reaction to data has been muted, given expectations that the indicators won’t impact the Federal Reserve’s decision to wind down its bond-buying stimulus program. Strengthening currencies elsewhere in the world also pushed the dollar weaker whilst other market participants suggested that it was the weak data which had taken on an increased significance in the market, stressing that it’s impossible to ignore the coincidence of U.S. dollar weakness with the sudden slump in top of the line U.S. economic data.
The British pound, meanwhile, reached the highest since November 2009 after a report revealed that U.K. house prices rose the most since October 2012. The report showed that asking prices for U.K homes rose 3.3 percent this month from January, when they gained 1 percent, adding overall to the stronger U.K. story. Analysts say that there is no obvious reason to sell the pound, apart from the fact that it’s probably getting a little stretched on the charts. The pound has surged 1.6 percent in the past week, the most among 10 developed-market currencies tracked by Bloomberg Correlation-Weighted Indexes. The dollar has fallen 1 percent, the biggest decliner.
Asian Shares Rise But Japan Stocks Affected By Disappointing Growth
Asian shares rose on Monday as worries about emerging markets continued to ebb, sucking the safe-haven support out of the U.S. dollar while giving commodities a lift. Several Asian currencies all gained ground as sentiment improved and dealers reported an influx of funds to many emerging markets. The Indonesian rupiah did especially well with the dollar down 4 percent in as many days. The lower dollar in turn tends to be positive for commodities priced in that currency, helping spur gold to a fresh three-month peak at $1,329.55. Japanese stocks, meanwhile, were weighed by the release of disappointing growth numbers. Data showing Japan’s economy grew just 0.3 percent in the fourth quarter of last year, compared with the previous quarter, confounding forecasts of a 0.7 percent gain. The disappointing result will keep pressure on the Bank of Japan to support the economy once an increase in the sales tax goes through in April. The central bank’s latest policy meeting ends on Tuesday and the markets will be keen to see what it makes of the growth figures.
Who’s Winning The Smartphone Wars?
Many believe this is now a two-horse race, but which is the stronger platform? Both have a high degree of momentum but since Android has more manufacturers it has recently become more widely acknowledged for its growth. Apple’s strength is the relationship with developers as well as the piece of hardware that they have put out which is a compelling device that a lot of people want to use. Almost a billion smartphones shipped globally last year, and Google’s Android OS was the big winner except in the U.S., where its share fell by about 2 percentage points and Apple’s iOS gained 6 points. It will be interesting for traders to see how this plays out.
Source: Bloomberg
That sums up today’s highlights! We hope you have a profitable day on the markets.
