Daily market overview from IFC Markets
This is a discussion on Daily market overview from IFC Markets within the Economic & Fundamental Analysis forums, part of the Methods category; World stock markets went on rising on Friday. From its local low of October 15, S&P500 climbed 8.4%, the biggest ...
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|Nov 3, 2014, 2:18pm||#9|
Joined Oct 2014
Global markets still rising on Friday
World stock markets went on rising on Friday. From its local low of October 15, S&P500 climbed 8.4%, the biggest two-week rise since December 2011. As expected, the US economic data was quite ambiguous on Friday. Personal Income and Spending indicator fell, while Chicago PMI and Michigan Consumer Sentiment Index upped.
We assume that the overall price growth on US exchanges could be caused by good quarter reports of such large companies, as Exxon Mobil (stocks rose 2.4%) and Chevron (+2,3%). The trading volume on Friday was 7% above the monthly average and amounted to 8.3 billion stocks. About 70% of the US companies have announced their earnings reports so far. In general, their profits outperform tentative forecasts. Due to this data, S&P 500 and Dow Jones Industrial hit historical highs last week. The US dollar index has also grown considerably. In our opinion, the US dollar consolidation would cut the financial performance of corporations. There is still a possibility that the dollar and the US stock indices would move in opposite directions, so we plan to create a PCI for the practical use of such assumptions. Today at 14-45 СЕТ Markit’s Manufacturing PMI for October is to be released in the US. At 15-00 СЕТ ISM Manufacturing in October and Construction Spending in September will be announced. Besides, the two regional Fed officials will be giving their speeches. In general, we believe that tentative forecasts are slightly negative, and both indices are not that important, so that market participants would continue active stock purchasing at historical highs.
FTSEurofirst 300 stock index had the fastest growth last week since December 2013, adding 3%. There was no significant macroeconomic data released, the ECB officials have not declared anything substantial. The prices were rising in line with the global trend. Note that the Bank of England increased the leverage ratio for Scottish banks. Barclays bank stock price ticked up 8%, Royal Bank of Scotland – 7%. European stocks are slipping slightly today. The earnings reports look weaker than those in the US: 67% of European companies have announced their reports. The performance of 58% of the companies matched or exceeded the outlook. There are 75.8% of such companies in the US. The members of the ECB Governing Council are expected to give speeches at 12-00 and 14-00 СЕТ.
Nikkei jumped greatly on Friday. More information about that is available in the previous overview. Today the majority of Japanese financial institutions are closed for the national holiday – Culture Day.
Commodity futures prices plunged as quite negative macroeconomic data was released in China. The reduced Manufacturing PMI in October outperformed forecasts (51.2), while in fact it was 50.8 points. Note that when the index rises above 50, a general tendency of the economic growth is maintained.
Grain futures are dipping after the rally in October. Thus, corn prices rose 18% last month, the highest level since July 2012. Apart from the economic slowdown in China, the grain futures plunge was caused by the forecasts indicating warm weather in the US, and also the crop growth forecast by the International Grains Council (IGC). There was being gathered only 46% of the US grain crop by the end of October: it is significantly less than the 5-year average of 65%. According to IGC, the global corn crop of this year would amount to 979.7 million tons, and wheat - 717.6 million tons. Compared to the previous forecast, the corn crop has been increased by 6 million tons, and wheat – by 1 million tons. However, note that according to the weekly data of CFTC, hedge funds raised corn net long positions and reduced net short positions on wheat and soybeans. Cocoa and coffee net long positions were also reduced.
|Nov 4, 2014, 11:17am||#10|
Joined Oct 2014
Markets end Monday's session lower on weak economic data
The US markets ended Monday’s session marginally lower. The stock indexes were dragged down by falling energy stocks. Investors are getting rid of energy and materials sector stocks on the backdrop of falling oil prices. The S&P 500 hit an intraday record at 2,024.54, but finished the day marginally lower at 2,017.81 with the S&P 500 energy sub sector losing 1.7%. The Dow Jones Industrial Average hit an intraday record of 17, 398.54, but ended lower, losing 24.28 points, or 0.1%, and closed at 17,366.24. Meanwhile, the Nasdaq Composite defied the general trend and finished up 8.17 points, or 0.2%, to 4,638. US economic data released on Monday were mixed and failed to boost investor sentiment. The Institute for Supply Management manufacturing survey index rose in October, but the final PMI index and construction spending fell. The ISM survey results showed the October manufacturing index jumped to 59% from a reading of 56.6% in September. At the same time the final reading of Markit’s US manufacturing purchasing managers index dropped to 55.9 in October from an advance reading of 56.2 and a September level of 57.9. The data on construction spending were also disappointing as they indicated a 0.4% fall in September against a forecasts for a 0.7% increase. Manufacturing data from Europe and China were also disappointing. At the same time, experts are optimistic about US stock market prospects, pointing to healthy earnings growth and the decision by the Japanese Government Pension Investment Fund to increase its holdings of foreign stocks to 25% of its monetary base (from roughly 16% currently). The reports of nearly 375 S&P 500 companies indicate earnings are growing at a nearly 10% pace, and revenue is up 4% to 5%, beating expectations. Furthermore, experts estimate the Japanese Government Pension Investment Fund will allocate about $60 billion for new purchases of non-Japanese stocks and that half could be invested in US stocks by the end of 2015 expansion, which would benefit US equity markets next year. A couple of economic reports are due today. Today at 14:30 CET US Trade Balance and Factory orders for September will come out. The tentative forecast is slightly negative, with the negative Trade Balance widening to an expected -$40.2 billion from -$40.1 billion in the previous month. The Factory Orders are expected to fall by 0.6% against a 10.1 % reduction in the previous month.
European stocks fell from a four-week high on disappointing euro zone and US economic data. Investors were disappointed by the results of Markit’s PMI survey for euro zone which indicated manufacturing activity in the euro zone grew slightly more slowly than thought last month and Germany recorded only marginal expansion while France and Italy contracted. The FTSEurofirst 300 index of top European shares ended 0.86 percent lower at 1,340.38 points after rising to as much as 1,355.16, the highest since early October. As experts note, the weak economic data increase the probability that the European Central Bank will take more aggressive measures to support the Eurozone economy. Stocks in Asia were mixed on Monday following the report on Saturday that China’s official manufacturing gauge came in at a five-month low of 50.8 for October. Markets in Australia and Hong Kong fell slightly while Shanghai gained. Tokyo was closed for a holiday.
Oil prices fell on Monday on weak global demand, stronger dollar and fears Saudi Arabia could announce another price cut after last month it slashed prices. December Brent crude oil, which is widely seen as the global oil benchmark, fell $1.58 to $84.28 a barrel on London’s ICE Futures exchange. Oil extended an early decline after the reported increase of Institute for Supply Management’s US October manufacturing index pushed the US dollar index up 0.5%. Stronger dollar added further pressure on oil after data over the weekend showed China’s official manufacturing PMI dropped to a five-month low of 50.8 in October from 51.1 in September, indicating China’s economy is slowing down. China is the world’s second-largest oil consumer, and sagging oil demand, due to its slowing economy, has been partly responsible for the slump in global oil prices. And today Saudi Arabian Oil Co., known as Saudi Aramco, lowered the cost of its crude to the US. Aramco increased the cost to Asia and Europe. The price cut for US importers means the largest OPEC producer wants to preserve market share in US, which was falling recently due to expanding domestic production which has increased 54 percent in the past three years.
After slumping 2.3% to finish at $1,171.60 an ounce last week, gold fell again on Monday. Gold for December delivery lost $1.80 to $1,169.80 an ounce. Rising dollar, helped by improving US economy and surprise announcement of the Bank of Japan on Friday about expanding its quantitative easing program, makes commodities more expensive. With no increase in global economic uncertainty the demand for gold and other safe haven assets has been declining recently. Elsewhere in metals trading, January platinum closed up $4.80, or 0.4% to $1,240 an ounce, while December palladium rose $11.45, or 1.45.%, to $803.25 an ounce.
|Nov 5, 2014, 3:00pm||#11|
Joined Oct 2014
US and European markets decline
US stocks declined on Tuesday as the sell-off of energy shares dragged the S&P500 index lower. Investor sentiment was not helped by the news that the European Commission cut its forecast for growth of domestic product for the 18-country euro zone to 0.8% in 2014, from a previous forecast of 1.2%, in the spring. The downward revision of euro zone economic growth rate is the latest indication of slowing global growth after recent data on Chinese Purchasing Managers' Index showing Chinese factory activity unexpectedly fell to a five-month low in October, reinforcing views that the country's economic growth is slowing. The unexpected decision by the Saudi Arabia on Monday to cut oil prices for US resulted in a further slide in oil prices, putting a further pressure on energy stocks. The S&P 500 finished 5.71 points, or 0.3%, lower at 2,021.10. After swinging between small gains and losses the Dow Jones Industrial Average finished the session with a 0.1% marginal gain at 17,383.84. The Nasdaq Composite shed 15.27 points, or 0.3%, to 4,623.64. Most of the companies having published their earnings reports, investors will be focusing on economic data and the ECB meeting on Thursday. The Commerce Department said on Tuesday the trade deficit increased 7.6 percent to $43.03 billion instead of narrowing as had been expected. The surprising spike in the trade deficit is likely to reduce third-quarter growth when the government revises the report later this month. Today at 13:00 CET the Mortgage Applications for the week ended October 31 will be released by Mortgage Bankers Association in US. At 14:15 CET the Automatic Data Processing, Inc publishes the Non-Farm Employment Change in US for October, the tentative forecast is positive. At 16:00 CET the ISM Non-Manufacturing Composite index for October will be released in US, the tentative outlook is positive. At 15:15 CET Fed's Kocherlakota speaks on Monetary Policy in Minnesota, and at 15:30 CET Fed's Lacker speaks on Financial Stability in Washington, while Fed's Rosengren speaks at Conference in Lima.
European stock markets retreated from earlier gains and slumped in late trading on Tuesday after reports that central bankers in the euro area planned to challenge European Central Bank President Mario Draghi over his secretive management style. Investors are concerned that the division within the ECB will negatively affect the European monetary authority’s ability to implement bold policy actions to fight deflation and stimulate economic growth in euro zone. The cut by the European Commission to its growth forecast for the euro zone didn't help bolster investment optimism either. The revised forecasts predict the euro zone economy will expand 0.8 percent this year, 1.1 percent next year and by 1.7 percent in 2016 - a level the Commission had said six months ago would be achieved next year. Across Europe, Britain's FTSE 100 fell 0.5 percent, Germany's DAX dropped 0.9 percent and France's CAC fell 1.5 percent. In Asia, Nikkei surged 2.7% to a seven-year high Tuesday, after the Bank of Japan’s surprise decision on Friday to expand bond purchasing program to ¥80 trillion (around $700 billion) annually from ¥60-¥70 trillion.
Oil continued falling as expanding supply outpaces consumption growth limited by slowing global economy. West Texas Intermediate crude oil for December delivery declined as much as 45 cents to $76.74 a barrel in electronic trading on the New York Mercantile Exchange and was at $76.81 at 3:10 pm Singapore time. The contract lost $1.59 to $77.19 yesterday, the lowest close since October 2011. Brent for December settlement slid as much as 73 cents, or 0.9 percent, to $82.09 a barrel on the London-based ICE Futures Europe exchange. Prices are down 26 percent in 2014. The major producers are not willing to cut production. According to the US Energy Information Administration, oil output in US increased to 8.97 million barrels a day through October 24, the fastest pace in more than 30 years. Saudi Arabia cut its December sales price for Arab Light crude to the US Gulf Coast by 45 cents a barrel, a company statement on November 3 showed. This move is interpreted as a signal Saudi Arabia will be fighting for his US market share, defending it from shale producers. Saudi Arabia’s Oil Minister Ali Al-Naimi is scheduled to attend a climate event in Venezuela starting on November 6, according to embassy officials in Caracas. As experts note, the Saudis are trying to bring OPEC’s smaller members in line before the group’s November 27 meeting in Vienna.
Corn dropped for a third day to reach a one-week low on speculation that dry weather in the U.S. will allow farmers to accelerate harvesting of a record crop. The contract for December delivery lost 0.7 percent to $3.62 a bushel on the Chicago Board of Trade, the lowest level since October 28. Soybeans for January delivery retreated 0.3 percent to $10.07 a bushel after dropping 1.9 percent yesterday. About 83 percent of soybeans were harvested as of November 2 from 70 percent a week earlier, matching the five-year average. Wheat for December delivery fell 0.2 percent to $5.2925 a bushel after declining 1.4 percent yesterday.
|Nov 6, 2014, 3:39pm||#12|
Joined Oct 2014
S&P 500 and Dow hit historical highs
World stock markets rose yesterday. S&P 500 and DJI even hit new historical highs. In general, the sideways trend is observed on the global markets since the beginning of the week, as the US labor market data for October will be released tomorrow.
ADP Non-Farm Employment Change in October was released on Wednesday in the US. The risen number of jobs (230K) appeared to be at the highest level since June and outperformed the forecasts (220K). Currently, investors expect the official data released on Friday to be positive. The Republican Party gained the majority of votes in the US Senate yesterday. This was the reason for energy stocks to jump in prices. Market participants hope that Republicans would get the permission to export the US hydrocarbon material. Nasdaq fell slightly due to weak earnings reports of TripAdvisor and FireEye. Their stocks tumbled 14% and 15%, respectively. The trading volume on the US stock exchanges was 13% below the 5-day average and reached 6.4 billion stocks. Today we expect the release of Initial Claims and Q3 Non-Farm Payrolls at 13-30 СЕТ in the US. In general, the outlook is neutral. The US dollar index is slipping moderately. The euro is rising ahead of the next ECB meeting and its President Mario Draghi speaking at the press conference at 13-30 СЕТ. It has already been reported the issuing money volume would amount to $1 trillion euro. However, most of the market participants believe that the conditions of private bonds purchasing will be revealed at the ECB meeting in December. Today Mario Draghi’s speech is likely to be limited to the ECB forecasts of the EU economic indicators. There is a possibility if that happens, the euro may continue its upward movement and strengthen against the US dollar.
European markets upped less than the US markets. Investors deem that the delay in the ECB program of European economy stimulation would have a negative impact on the financial statements of companies. Currently the earnings reports have been published by approximately half of the European companies. The earnings of 64% of them exceeded or matched the forecasts. Now the European stock indices are falling, as investors do not expect good news and the launch of the ECB economic stimulus at 12-45 and 13-30 СЕТ. Moreover, the German growth of industrial orders in September released in the morning was worse than expected.
Nikkei is now dipping in line with other world indices after a strong growth in last few days. In our opinion, its further rise should be confirmed by good economic data. It will come out only the next Monday late in the evening. Note that some economists have criticized the recent decision of the Bank of Japan to increase the amount of money issued, so that it caused the Nikkei growth.
Grain futures, precious metals, coffee and cocoa continued to fall as the US dollar strengthens and the Chinese economy indicates recession. Amid these events the copper price has fallen. Morgan Stanley lowered 1.1% or 250K tons the copper demand forecast in 2014/2015. According to International Copper Study Group, there was a global copper shortage of 589K tons in the first seven months of this year, and since the end of July there was an excess of 77K tons.
The rainy weather forecast in Brazil given by MDA Weather Services pushed coffee and sugar prices down. Some market participants are even planning to revise downwards their crop forecasts in this country. Cocoa price fell ahead of the rainy weather in West Africa and the Ebola situation stabilization. It has not yet spread to the main cocoa producer, the Ivory Coast.
According to China National Grain and Oils Information Centre, there would be an increase in soybean imports to China in November by 5.81 million tons (+38,3%), and in December to 6.8 million tons (+ 62%), compared to 4.2 million tons in October. There is a possibility it might boost soybean prices by the end of the year.
|Nov 10, 2014, 2:48pm||#13|
Joined Oct 2014
Stock markets go on rising
European markets rebounded after the falling observed last week. Such a surge was caused by the investor reaction on positive earnings reports released by major European companies: Carlsberg, Nutreco NV, Fugro NV, Kabel Deutschland and Serco Group Plc. As a result, today Stoxx Europe 600 rose 0.2% to close at 336.05.
S&P 500 hit the weekly high amid expectations of positive earnings reports and added 0.1%. A similar growth was demonstrated by DJI index. This week we expect the data released by 16 companies listed in S&P 500, including Cisco Systems Inc. and Wal-Mart Stores Inc. Excellent results were shown by the companies which have already published their reports: 80% of them have outperformed the profit expectations, 60% exceeded the expected sales turnover.
China announced the opening of Shanghai and Hong Kong exchanges for foreign investors: the asset capitalization traded on the stock exchange amounts to $4.2 trillion. The program starts on November, 17. Currently, Shanghai and Hong Kong indices upped 0.8%. Note that the market liberalization program is designed to attract additional investment funds and reduce China's dependence on exports. The country will partially re-focus its markets on domestic consumption.
Gold continued to fall on the London exchange. The investor expectation that the US economy boosting would result in loans amount increase was not justified. In general, the market of precious metals grew on November 7, after the US labor market data release. Non-farm Payrolls was below the outlook: 214000 jobs vs. the expected 235000.
Brent crude oil futures climbed to the weekly high level. Chinese exports outperformed the economic outlook, and that triggered the commodity demand reassessment. Note that China is the second largest importer, and an increase in technology products exports requires higher energy costs, which leads to a natural rise in oil prices: London’s Brent has added 1.7% today. However, we should not expect the global recovery. Kuwaiti Energy Minister said he did not expect any decision on the reduction of oil production at the next OPEC meeting on November 27.
|Nov 11, 2014, 1:46pm||#14|
Joined Oct 2014
World markets rise on Monday
US stock markets recorded marginal gains on Monday with investors’ optimism supported by the release of US payroll figures on Friday on the backdrop of weak global economic growth. The S&P 500 closed at a new record high, adding 6.34 points, or 0.3%, higher at 2,038.26. The The Nasdaq Composite rose 19.08 points, or 0.4%, to 4,651.62, the highest level since March 2,000. On Monday the Federal Reserve released its new monthly labor market conditions index, based on 19 separate U.S. labor market indicators, including the unemployment rate and labor force participation rate. The index showed an unchanged 4.0 level for October, providing a modest boost to investor confidence amid concerns over slow recovery in job market. Experts indicate that falling oil prices will likely provide still further momentum for US economic growth as lower gasoline prices will free up consumer spending and the increased consumption component of GDP will outweigh the loss of earnings by energy companies.
European stock markets rebounded on Monday as oil company stocks rose with rising energy prices and companies boosted acquisition activity in the oil services industry . The Stoxx Europe 600 index gained 0.2% to 335.96, after closing out last week with a 0.5% weekly slide. In a speech on Monday a senior ECB policy maker, Executive Board member Yves Mersch said the European Central Bank could examine the possibility of buying state bonds as the bloc's recovery and that of its top economy, Germany, has lost pace. Asian stocks rose today, helped by the gains on Wall Street. The MSCI Asia Pacific Index advanced 0.3 percent by 1:45 pm in Tokyo, with Hong Kong’s Hang Seng Index climbing 0.6 percent. Japanese shares outperformed in Asia on Tuesday, with the Nikkei stock average rising more than 2 percent to a 7-year high as investors expect Prime Minister Shinzo Abe may postpone a planned sales tax increase and call early elections.
West Texas Intermediate crude oil fell for a second day as forecasts for a sixth weekly gain in US crude stockpiles bolstered speculation that rising supply is outpacing demand. Brent Oil for December settlement dropped 1.3 percent to close at $82.34 yesterday, the lowest level since October 2010. The European benchmark crude traded at a premium of $5 to WTI. Amid signs that global supply is outpacing demand OPEC Secretary General Abdullah al-Badri told markets not to “panic” over low oil prices at an industry conference in Abu Dhabi. OPEC’s second-largest producer, Iraq, has joined Saudi Arabia in fighting to protect its market share. This is another indication the major oil producers are not planning to cut production in near future.
With dollar gaining strength and US economy improving gold is under pressure and was trading above the lowest level since 2010. Gold for December delivery slid 1 percent to $1,148.50 an ounce on the Comex in New York after most-active prices sank to $1,130.40 on November 7, the lowest level since April 2010. Silver for immediate delivery slid 0.7 percent to $15.507 an ounce. Spot platinum was at $1,197.88 an ounce from $1,198 yesterday and palladium rose 0.2 percent to $764.50 an ounce.
|Nov 12, 2014, 2:39pm||#15|
Joined Oct 2014
World markets continue rising on Tuesday
US stocks closed at record high for a fifth straight trading session on Tuesday. Stocks posted marginal gains in thinly traded sideways session as no major economic data were released during the day. The S&P 500 added 1.42 points to 2,039.68, registering a fresh record. The Dow Jones Industrial Average climbed 1.2 points, or less than 0.1 percent, to a record 17,614.90. The Nasdaq Composite rose 8.94 points, or 0.2%, to 4,660.56. The single piece of economic data released in a day absent of significant economic statistics due to the Veterans Day holiday, the National Federation of Independent Business reported its small-business optimism index rose 0.8 point to 96.1 in October, a two-month high. And in a CNBC interview Charles PLosser, Philadelphia Fed president, said that even though inflation was below the Fed's preferred level of 2 percent, there was no reason to keep interest rates at current crisis-era levels, especially with U.S. unemployment now so low. He is among the minority of Fed officials who support ending the ultra easy monetary policy sooner than mid 2015. The Fed statement last month reconfirmed that interest rates will be kept low for a "considerable time", but tied a rate hike more closely to economic data. Today at 16:00 CET the Wholesale Inventories mom for September will be released in US, with the forecast of 0.3% against the previous month’s actual number of 0.7% . At 18:00 CET Federal Reserve Bank of Minneapolis President Narayana Kocherlakota will deliver a speech titled "Clarifying the Objectives of Monetary Policy" in Wisconsin.
Major European benchmarks ended the trading session on Tuesday higher for a second straight day. Investor optimism in Europe was boosted by upbeat earnings reports. The Stoxx Europe 600 index closed up 0.4% at 338.93, building on a 0.7% gain from Monday. France’s CAC 40 index added 0.5% to 4,244.53, while Germany’s DAX 30 index gained 0.2% to 9,369.03. The UK’s FTSE 100 index put on 0.2% to 6,627.40, moving higher for a fifth straight day. Vodafone Group PLC , Henkel AG and Royal Vopak NV gained 5.4%, 4.6% and 1.9% after reporting improved performance and revenues. Today at 11:00 CET euro zone Industrial Production data will be released. And at 11:30 CET the Bank of England Inflation Report will be published after employment data at 10:00 CET. Economists expect that the Governor Mark Carney is likely to signal that British interest rates will stay at a record low until around the middle of next year, and the Bank is likely to revise downward the forecasts for growth and inflation it published three months ago because of euro zone economy slowdown and falling oil prices. This will likely result in weakening of the British pound sterling. And tomorrow in the morning at 08:00 CET German Consumer Price Index YoY for October will be released, the outlook is neutral as the CPI is expected to stay unchanged at the level of 0.8%. Two hours later at 10:00 CET on Thursday the ECB publishes its Monthly Report. Asian markets were mixed on Tuesday. Hong Kong stocks rose for a second straight day, as investors squeezed some more gains out of news that the long-awaited Hong Kong-Shanghai Stock Connect would start next week that will allow retail investors around the world to invest in mainland Chinese equities. In Japan stocks rallied on Tuesday as investor optimism was boosted by tumbling yen and an unexpected surge in current account surplus in September. The Nikkei Average jumped 2.1%, recovering from Monday’s loss of 0.6%. Meanwhile, the yen dropped sharply versus the dollar, trading at ¥115.86, compared with ¥114.94 a day earlier. Official data showed Tuesday that Japan’s current account surplus reached ¥963 billion ($8.1 billion) in September, up 61.9% from a year ago. And a newspaper reported today that Japanese Prime Minister Shinzo Abe will postpone a planned tax increase and call a general election for December, boosting stocks further.
Brent crude fell for a third day and West Texas Intermediate dropped in New York. Brent for December settlement closed at $81.67 yesterday, the lowest price since October 2010. Amid signs that supply is outpacing global demand OPEC members are cutting export prices to the US to defend their market share. Yesterday Angola’s Deputy Oil Minister Anibal Octavio da Silva said OPEC is undecided on a production cut. Saudi Arabia, OPEC’s largest producer, and Kuwait have signaled they’re unlikely to reduce output, while Libya, Venezuela and Ecuador have called for action to keep prices from falling further.
Gold posted a marginal gain on Tuesday in a session that started with losses. Gold for December delivery added $3.20, or 0.3%, to $1,163 an ounce on the Comex division of the New York Mercantile Exchange. Holdings in the SPDR Gold Trust shrank for a sixth day to a six-year low yesterday in the longest slump since November 2013. Gold will be under pressure as long as stronger US dollar and improving US economy decrease the demand for safe haven asset. Elsewhere in the metals sector, January platinum lost 20 cents to settle at $1,206.70 an ounce while December palladium rose $6.45, or 0.8%, to settle at $772.70 an ounce. Meanwhile, December silver settled up less than a penny at just under $15.68 an ounce.
|Nov 13, 2014, 11:56am||#16|
Joined Oct 2014
The Dow and S&P 500 snap 5-day winning streak
US stocks fell on Wednesday, breaking the S&P 500's and Dow Jones Industrial Average’s 5-day record-closing streak as falling oil prices and heightened geopolitical risks turned investors cautious. After advancing 1.4% in previous five sessions the S&P 500 closed 1.43 points lower at 2,038.25 as investors sold off utilities and energy sector stocks. The Dow Jones Industrial Average slipped 2.7 points to 17,612.20. Today at 14:30 CET the Continuing Claims for the week ended November 1 and Initial Jobless Claims for the week ended November 8 will be released in US. The tentative forecast for the Continuing claims is positive, while the Initial Jobless Claims number is expected to rise marginally. At 18:45 CET Fed Chair Janet Yellen will deliver welcoming remarks at FED/ECB event.
European markets closed lower on Wednesday as banking shares declined after companies agreed to pay multi-billion dollar fine to settle allegations that their traders helped rig currency markets and data from European Union’s statistics agency indicated that third-quarter output in euro zone will be lower than in the second quarter. A report from the International Monetary Fund on Wednesday warned of downside risks to its growth projections for the euro zone, and urged the European Central Bank to act if prices continue falling. Declining banking stocks dragged UK’s FTSE 100 , which fell 0.3% to 6,611.04. The British pound slumped after the Bank of England cut its forecasts for growth and inflation and signaled it is unlikely to raise interest rates until the second half of next year. The Bank of England sees British inflation falling below 1 percent in the next six months and Governor Mark Carney said markets were right to rule out an interest rate hike any time soon. The pound fell to $1.5818, from $1.5918 late on Tuesday. Separately, the Organization for Economic Cooperation and Development report indicated economic growth is set to slow in the euro zone and in the UK over the coming months. The Stoxx Europe 600 index fell 1.1% to close at 335.09, falling from a five-week closing high reached on Tuesday.
In Asia, China’s stock markets closed higher as investors expect that a stock trading link between Shanghai and Hong Kong launching on Monday will bring new players to mainland China’s stock market. In Japan, the Nikkei Stock Average ended up 0.4% at 17,197.05. Investors are betting that the planned national consumption tax increase originally expected next year will be delayed by Prime Minister Abe after he evaluates economic indicators such as July-September gross domestic product, scheduled to come out November 17.
Brent crude fell further from a four-year low, trading near $80 a barrel amid signs that OPEC remains unwilling to reduce output to stem global oversupply. West Texas Intermediate was steady in New York. Saudi Arabia’s oil minister said in a public comment that talk of a price war has “no basis in reality” and they “want stable oil markets and steady prices”. Kuwaiti Oil Minister Ali Al-Omair said today OPEC won’t cut its collective output target at this month’s meeting.
Corn advanced for a fourth day, as reports of arctic air masses moving to northern and central US this week gave rise to speculation ranchers will increase feed stocks as animals will need to use more energy to stay warm.
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