Tag Archives: U.S. Stock Markets

morning-coffee

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.

dollar yen

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.

gold

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.

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morning-coffee

Euro Inches Away From 2 1/2-Month Lows

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

Euro Inches Away From 2 1/2-Month Lows

The euro staged a rebound today from a 2-1/2-month trough rising 0.1 percent to $1.3718. It had fallen as far as $1.3648 on Thursday, its lowest level since late February, in response to data showing the Eurozone grew much less than expected at the start of the year. The euro was down about 0.3 percent for the week at its current levels, putting it on track for its second straight weekly decline. The euro has fallen roughly 2 percent since May 8 when European Central Bank (ECB) President Mario Draghi persuaded markets that the bank was ready to inject fresh stimulus next month. The disappointing growth figures on Thursday only served to fuel those dovish expectations. The euro eased 0.1 percent to about 139.17 yen, not far from a 2-1/2-month low near 138.97 yen set on Thursday.

Decision Time for Cyprus

Stock Market Slumps As Economy Stuck In Low Growth

The big debate about the U.S. economy as the country emerges from the winter is whether the growth it has been experiencing is modest or accelerating. Recent figures show that recovery is “modest” which has big implications for stock prices. April Industrial Production, down 0.6 percent, was a big disappointment since it was only expected to be down 0.2 percent. That joins April Retail Sales, released on Tuesday, which were also disappointing. Bond yields are dropping in the U.S. and most of Europe, but importantly bond yields are higher in the periphery in Europe…in Italy, in Greece and in Spain. The final number we are looking for is April Housing Starts, out today. Starts are expected at 984,000, the best since December, but some are expecting more than 1.0 million Permits. The numbers so far have not been optimistic for housing. The NAHB Housing Market Index, an indicator of sentiment among home builders was also a disappointment, at 45, below expectations of 48. If we get disappointing Starts and Permits, could it be the nail in the coffin for a robust housing recovery this spring?

Gold Settles Lower After Jump In Consumer Prices

Gold prices on Thursday gave back some of the gains they notched a day earlier after a jump in consumer prices in the U.S. and a drop in jobless claims pointed to an economy on the mend, dulling the precious metal’s safe-haven appeal. Gold for June delivery fell $12.30, or 0.9%, to settle at $1,293.60 an ounce. This comes a day after the precious metal closed up $11.10, or 0.9%, at $1,305.90 an ounce. Gold reacted on the positive U.S. economic news of a lower reading of initial jobless claims which were below 300,000 - a positive sign for labour markets going forward. Consumer prices rose by 0.3% in April to mark the biggest gain since June, with core prices up 0.2%, while jobless claims fell to the lowest level since 2007. Analysts say jobless claims and CPI data have triggered a shift in sentiment for markets. Traders are punishing gold on the back of this data as it shows an improvement in the economic growth.

gold

That sums up today’s highlights! Don’t forget you can stay in touch via our social media channels for all your up-to-the-the minute trading news. We hope you have a profitable day on the markets.

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