The conflict in Ukraine continues to escalate. Ukraine launched a military operation against activists in an attempt to regain control of Ukrainian cities. The news heightened market fears that tensions could get worse. US stocks traded choppy throughout the session pulled by updates over Ukraine but also by positive earnings. Coca Cola and Johnson & Johnson both reported stronger than expected earnings bringing some optimism into the market. Stocks closed higher as sentiment was lifted; the S&P 500 closed 0.68% higher and the Dow Jones closed 0.55% higher. Asian stocks also advanced following upbeat Chinese data. China’s GDP grew 7.4% in the first quarter, slightly better than economists had expected. The data seemed to ease concerns over the slow down of the Chinese economy and immediately after the results, Hong Kong markets reacted positively and the Hang Seng closed 0.11% higher. The Nikkei also increased as the Yen weakened against the Dollar. The Dollar is currently buying ¥102.3 up from ¥101.86 yesterday. European markets are higher today following positive sentiment from China. Traders should focus on inflation data for the Eurozone being released at 10am GMT. Inflation has been in the spotlight recently due to fears of deflation which is adding pressure to the ECB to ease monetary policy and maintain price stability.
WTI Crude is climbing once again and has reached a six week high due to the increasing tension in Ukraine. Positive Chinese GDP also added support suggesting that demand could grow. The EIA is releasing inventory data later in the day (3.30pm GMT) and is expected to report a rise in weekly U.S. crude supplies so traders should watch these figures closely. Gold is trading near a weekly low as the Dollar strengthened on the back of positive US data. The data leads to speculation that the Fed could choose to up their current pace of tapering which would have a bearish effect on the metal. Physical demand is also low. Traders should focus on Janet yellen’s speech later in the day at 5.15pm GMT.
Today’s Main Events:
09.30 GMT: GBP – Claimant Count Change – measures the change in the number of unemployed people in the U.K. during the reported month
10.00 GMT: EUR – CPI – measures the change in the price of goods and services from the perspective of the consumer.
13.00 GMT: USD – FOMC Member Stein Speaks – Due to deliver a speech at the Federal Reserve Bank of Atlanta’s Financial Markets Conference, in Stone Mountain
13.30 GMT: USD – Building Permits – measures the change in the number of new building permits issued by the government. Building permits are a key indicator of demand in the housing market.
15.00 GMT: CAD – Interest Rate Decision – Bank of Canada (BOC) governing council members come to a consensus on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
17.15 GMT: USD – Fed Chair Yellen Speaks – Due to speak at the Economic Club of New York
18.25 GMT: USD – FOMC Member Fisher Speaks – Due to speak about the US and regional economic outlook at the Texas Public Policy Foundation Conference
April 16, 2014 – Daily Market News
Today’s Hot Assets: EUR, GBP, USD, CAD
The conflict in Ukraine continues to escalate. Ukraine launched a military operation against activists in an attempt to regain control of Ukrainian cities. The news heightened market fears that tensions could get worse. US stocks traded choppy throughout the session pulled by updates over Ukraine but also by positive earnings. Coca Cola and Johnson & Johnson both reported stronger than expected earnings bringing some optimism into the market. Stocks closed higher as sentiment was lifted; the S&P 500 closed 0.68% higher and the Dow Jones closed 0.55% higher. Asian stocks also advanced following upbeat Chinese data. China’s GDP grew 7.4% in the first quarter, slightly better than economists had expected. The data seemed to ease concerns over the slow down of the Chinese economy and immediately after the results, Hong Kong markets reacted positively and the Hang Seng closed 0.11% higher. The Nikkei also increased as the Yen weakened against the Dollar. The Dollar is currently buying ¥102.3 up from ¥101.86 yesterday. European markets are higher today following positive sentiment from China. Traders should focus on inflation data for the Eurozone being released at 10am GMT. Inflation has been in the spotlight recently due to fears of deflation which is adding pressure to the ECB to ease monetary policy and maintain price stability.
WTI Crude is climbing once again and has reached a six week high due to the increasing tension in Ukraine. Positive Chinese GDP also added support suggesting that demand could grow. The EIA is releasing inventory data later in the day (3.30pm GMT) and is expected to report a rise in weekly U.S. crude supplies so traders should watch these figures closely. Gold is trading near a weekly low as the Dollar strengthened on the back of positive US data. The data leads to speculation that the Fed could choose to up their current pace of tapering which would have a bearish effect on the metal. Physical demand is also low. Traders should focus on Janet yellen’s speech later in the day at 5.15pm GMT.
Today’s Main Events:
09.30 GMT: GBP – Claimant Count Change – measures the change in the number of unemployed people in the U.K. during the reported month
10.00 GMT: EUR – CPI – measures the change in the price of goods and services from the perspective of the consumer.
13.00 GMT: USD – FOMC Member Stein Speaks – Due to deliver a speech at the Federal Reserve Bank of Atlanta’s Financial Markets Conference, in Stone Mountain
13.30 GMT: USD – Building Permits – measures the change in the number of new building permits issued by the government. Building permits are a key indicator of demand in the housing market.
15.00 GMT: CAD – Interest Rate Decision – Bank of Canada (BOC) governing council members come to a consensus on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
17.15 GMT: USD – Fed Chair Yellen Speaks – Due to speak at the Economic Club of New York
18.25 GMT: USD – FOMC Member Fisher Speaks – Due to speak about the US and regional economic outlook at the Texas Public Policy Foundation Conference
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