ETX Capital Daily Market Bite, 14th January, 2013: European Markets Add Gains; Bernanke Speech Eyed
January 14, 2013 11:04 am
January 14th, 2012, Daily Market Bite from Ishaq Siddiqi Market Strategist.
European equities are trading moderately higher in early trading starting the week out on a positive note on news out of Japan that the newly elected government is considering plans to buy foreign debt in excess of 500 Billion USD in order to weaken the Japanese Yen versus other major currencies to kick start exports and the economy as a whole. Further adding to the positive sentiment out of Asia are speculations that the securities regulator will soon boost the percentage of stocks foreigners will be allowed to hold in Chinese companies. In Europe and the US there are very few economic and corporate data out today with the main focus being in Europe on the Euro-zone industrial production data expected to show a very modest rebound after last month’s very weak reading, confirming that overall the Euro-zone economy is still doing rather poorly with very few recovery signs visible at this stage. In the US focus will be on a speech by Fed chief Bernanke in Ann Arbor, which is followed by a question and answer session, with investors looking out for any comments from Bernanke regarding the US economy and any hints at all what the current bond buying program is concerned especially in regard to plans for how long it will continue. Overall sentiment for stocks remains positive although markets are expected to remain range-bound until later this week when major US companies like Intel, Goldman Sachs and Morgan Stanley are reporting their latest quarterly results and investors are getting a better insight of the state of the US economy when retail sales and production data are released. Also towards the end of the week more good news out of Asia is expected when China will publish retail sales, production and GDP figures with all of them likely to show an acceleration of the economy which should provide another boost to stocks around the globe.
January 14th, 2012, Daily Market Bite from Ishaq Siddiqi Market Strategist.
European equities are trading moderately higher in early trading starting the week out on a positive note on news out of Japan that the newly elected government is considering plans to buy foreign debt in excess of 500 Billion USD in order to weaken the Japanese Yen versus other major currencies to kick start exports and the economy as a whole. Further adding to the positive sentiment out of Asia are speculations that the securities regulator will soon boost the percentage of stocks foreigners will be allowed to hold in Chinese companies.
In Europe and the US there are very few economic and corporate data out today with the main focus being in Europe on the Euro-zone industrial production data expected to show a very modest rebound after last month’s very weak reading, confirming that overall the Euro-zone economy is still doing rather poorly with very few recovery signs visible at this stage. In the US focus will be on a speech by Fed chief Bernanke in Ann Arbor, which is followed by a question and answer session, with investors looking out for any comments from Bernanke regarding the US economy and any hints at all what the current bond buying program is concerned especially in regard to plans for how long it will continue.
Overall sentiment for stocks remains positive although markets are expected to remain range-bound until later this week when major US companies like Intel, Goldman Sachs and Morgan Stanley are reporting their latest quarterly results and investors are getting a better insight of the state of the US economy when retail sales and production data are released. Also towards the end of the week more good news out of Asia is expected when China will publish retail sales, production and GDP figures with all of them likely to show an acceleration of the economy which should provide another boost to stocks around the globe.
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