Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the markets:
Main Trading Events Of The Day: USD ADP Non-Farm Employment Change @ 13.15 & USD ISM Non-Manufacturing PMI @ 15.00 GMT
WHAT WE’RE WATCHING TODAY
U.S. Jobs Data On The Way…
With the focus having been on the situation in the Ukraine, the attention is back on U.S. economic reports today. The ADP report gives a hint of what the jobs report might look like on Friday. U.S. employers hired 150,000 workers in February, after adding 113,000 in January, according to a Bloomberg News survey. A report from ADP Research Institute today will show companies boosted payrolls by 155,000 last month after an increase of 175,000 in January. Employment gains for December and January were both less than economists forecast, depressed by winter storms. Weak data is explicable on account of the weather seems to be the mantra right now and the consensus is that it will take a couple of bad reports to disillusion investors at this point. In addition, the ADP report has been a wildcard in recent months in that it has been an inaccurate gauge of data from the U.S. Bureau of Labor Statistics.
Federal Reserve Chair Janet Yellen reiterated on Feb. 27 that the central bank is likely to keep curtailing its stimulus. The central bank said on Dec. 18 it would trim its monthly bond purchases to $75 billion from $85 billion, before cutting by another $10 billion in January. The purchases are designed to hold down long-term borrowing costs and spur economic growth.
Asian Shares Jump And Yen Recovers As Ukraine Tension Eases
Asian stocks jumped and the yen recovered after a sharp tumble on Wednesday, after Putin said that force was not needed for now. The markets took Putin’s words positively and with wariness over the Ukraine easing for the time being at least, the focus has shifted back to fundamentals, notably Thursday’s European Central Bank monetary policy meeting and Friday’s U.S. nonfarm payrolls report. However, despite the widespread relief, market watchers warned that the crisis was not over, warning of further jolts for the financial markets ahead. The easing of geopolitical tensions saw a reversal of yesterday’s movements in most asset markets. However, tensions remain high and suggest some further volatility in financial markets while the situation in Ukraine remains uncertain.
The Australian dollar, already on a bullish footing after cooling of tensions in Ukraine revived risk appetite, received a further boost after data showed Australia’s economic growth had beaten forecasts, reinforcing expectations of a steady interest rate outlook. The AUD was at $0.8947 from a low near 89 U.S. cents. Australia’s major trading partner China has said it will maintain its economic growth target for 2014 at around 7.5 percent as expected and push forward convertibility of the yuan. Analysts said the statement was an indication that China would widen the yuan’s trading band going forward as expected, further signaling a possible end to the currency’s one-way appreciation.
The yen, which rallied on its safe-haven appeal this week as tensions mounted in Ukraine, remained on the back foot after a heavy reversal on Tuesday. The dollar was buying 102.14 yen, moving away from a one-month low of 101.20 hit on Monday, while the euro bought 140.29 yen, after touching a two-week low of 138.75 yen on Thursday.
Tech News: PC Market Fell Hardest In 2013, Analyst Firm Says
The traditional PC industry saw its sharpest decline ever in 2013, and the sales drought is expected to continue through 2018 according to analysts, IDC. PC shipments fell by 9.8 percent overall last year, the sharpest drop on record. While the fourth quarter actually performed better than expected, IDC said that sales dried up in emerging markets, dipping 11.3 percent - evidence that tablets and phones are cutting into sales all across the world. 315.1 million PCs shipped in 2013, and 295.9 million are expected to be sold in 2014, a 6 percent dip. By 2018, the PC market should drop to annual sales of 291.7 million units.
Emerging markets used to be a core driver of the PC market, as rising penetration among large populations boosted overall growth but right now, emerging regions are finding themselves more affected by a weak economic environment as well as significant shifts in technology buying priorities. In making its projections, IDC said it factored in a number of variables, including concerns about the impact of slower economic growth and continued pressure from tablets and smartphones.
That sums up Wednesday’s highlights! We hope you have a profitable day on the markets.
