ETX Capital Daily Market Bite, 17th July, 2013; Markets Inch Up Ahead Of Bernanke Testimony
July 17, 2013 7:34 am
July 17th, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
Fed chairman Bernanke’s testimony to US Congress turning out to be the key-risk event over the next two session, prompting both the bulls and bears to avoid building too much risk exposure. Stocks on Wall Street fell on Tuesday and Asian markets were mixed in overnight trade giving European indices little fresh direction.
UK unemployment data, BOE meeting minutes and US housing starts will all catch attention before Bernanke’s testimony as will earnings from Bank of America and eBay out of the US. Bernanke’s speech will be released before his testimony begins and it’s likely the Fed chief will repeat his remarks last week that US monetary policy will remain highly accommodative for the foreseeable future and interest rates will remain at unprecedented low levels.
For market participants however, after last week’s dovish comments by Bernanke, some are fearing he may change his tune a little again. That being said, it’s likely he won’t stray too far away from his dovish remarks last week and for investors, more so than his speech, the Q&A will be highly scrutinized for signs of possible timeframe for tapering when the Fed eventually starts the process and also the amount the Fed will gradually unwind.
Before that of course, the BOE’s meeting minutes will catch the markets’ attention as we get our first insight into Governor Carney’s stance on QE; is he for or against? It’s likely he voted against pumping more stimulus but with the batch of damp UK data we have seen over the past few sessions, that may change in the coming months. Goldman Sachs’ Q2 earnings smashed expectations as expected in the previous session, following on from the success of peers JPMorgan and Citigroup.
Bank of America prepares to report Q2 results and the results will be keenly eyed by the market as BOA is a leader in the mortgage lending market. Wells Fargo last week beat expectations but did note a slowdown in mortgage lending, giving investors some reason to fret ahead of BOA’s release. Other earnings from the US include eBay and American Express before the opening bell. Tech giants Intel and IBM are lined up to report numbers after the US closing bell; Yahoo reported numbers that fell short of expectations overnight.
July 17th, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
Fed chairman Bernanke’s testimony to US Congress turning out to be the key-risk event over the next two session, prompting both the bulls and bears to avoid building too much risk exposure. Stocks on Wall Street fell on Tuesday and Asian markets were mixed in overnight trade giving European indices little fresh direction.
UK unemployment data, BOE meeting minutes and US housing starts will all catch attention before Bernanke’s testimony as will earnings from Bank of America and eBay out of the US. Bernanke’s speech will be released before his testimony begins and it’s likely the Fed chief will repeat his remarks last week that US monetary policy will remain highly accommodative for the foreseeable future and interest rates will remain at unprecedented low levels.
For market participants however, after last week’s dovish comments by Bernanke, some are fearing he may change his tune a little again. That being said, it’s likely he won’t stray too far away from his dovish remarks last week and for investors, more so than his speech, the Q&A will be highly scrutinized for signs of possible timeframe for tapering when the Fed eventually starts the process and also the amount the Fed will gradually unwind.
Before that of course, the BOE’s meeting minutes will catch the markets’ attention as we get our first insight into Governor Carney’s stance on QE; is he for or against? It’s likely he voted against pumping more stimulus but with the batch of damp UK data we have seen over the past few sessions, that may change in the coming months. Goldman Sachs’ Q2 earnings smashed expectations as expected in the previous session, following on from the success of peers JPMorgan and Citigroup.
Bank of America prepares to report Q2 results and the results will be keenly eyed by the market as BOA is a leader in the mortgage lending market. Wells Fargo last week beat expectations but did note a slowdown in mortgage lending, giving investors some reason to fret ahead of BOA’s release. Other earnings from the US include eBay and American Express before the opening bell. Tech giants Intel and IBM are lined up to report numbers after the US closing bell; Yahoo reported numbers that fell short of expectations overnight.
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