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.
