Tension over Ukraine increased once again at the end of last week. Pro-Russian separatists have declared an ‘independent people’s republic’ in an eastern city of Ukraine and protestors are holding several European monitors hostage. Fears are growing that the situation could escalate into a full war. Further sanctions could now be placed on Russia by members of the G7. Russia has hiked its rate to 7.5% and Standard and Poor’s has also cut its credit rating for Russia to BBB-minus. The tension is weighing on financial markets and U.S. stocks tumbled on Friday as a result. The S&P 500 closed 0.81% lower and the Dow Jones closed 0.85% lower. Markets also declined in Asia after China’s biggest life insurer lost 1.7% after reporting a 28% drop in first quarter profit. The Hang Seng lost 0.41% and the Nikkei lost 0.98%. European markets started the day higher pushed by a 15% rally in AstraZeneca. Currently, the DAX is up 0.85% while France’s CAC 40 is up 0.52% and London’s FTSE 100 is up 0.47%.
WTI Crude dropped strongly last week after the EIA reported the highest climb in inventories on record. The price rebounded today as the tension over Ukraine is boosting speculation that energy supplies could be disrupted. The tension in Ukraine has also pulled Gold higher as a safe haven asset. This week is big for data and traders should focus on the FOMC statement on Wednesday as it will tell us about the future direction of monetary policy and tapering. Following this, Nonfarm Payrolls will be released on Friday so we could see a volatile week for Gold.
Today’s Main Events:
14.00 GMT: USD – Pending Home Sales – measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.
22.45 GMT: NZD – Trade Balance – measures the difference in value between imported and exported goods and services over the reported period
April 28, 2014 – Daily Market News
Today’s Hot Assets: USD, NZD
Tension over Ukraine increased once again at the end of last week. Pro-Russian separatists have declared an ‘independent people’s republic’ in an eastern city of Ukraine and protestors are holding several European monitors hostage. Fears are growing that the situation could escalate into a full war. Further sanctions could now be placed on Russia by members of the G7. Russia has hiked its rate to 7.5% and Standard and Poor’s has also cut its credit rating for Russia to BBB-minus. The tension is weighing on financial markets and U.S. stocks tumbled on Friday as a result. The S&P 500 closed 0.81% lower and the Dow Jones closed 0.85% lower. Markets also declined in Asia after China’s biggest life insurer lost 1.7% after reporting a 28% drop in first quarter profit. The Hang Seng lost 0.41% and the Nikkei lost 0.98%. European markets started the day higher pushed by a 15% rally in AstraZeneca. Currently, the DAX is up 0.85% while France’s CAC 40 is up 0.52% and London’s FTSE 100 is up 0.47%.
WTI Crude dropped strongly last week after the EIA reported the highest climb in inventories on record. The price rebounded today as the tension over Ukraine is boosting speculation that energy supplies could be disrupted. The tension in Ukraine has also pulled Gold higher as a safe haven asset. This week is big for data and traders should focus on the FOMC statement on Wednesday as it will tell us about the future direction of monetary policy and tapering. Following this, Nonfarm Payrolls will be released on Friday so we could see a volatile week for Gold.
Today’s Main Events:
14.00 GMT: USD – Pending Home Sales – measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.
22.45 GMT: NZD – Trade Balance – measures the difference in value between imported and exported goods and services over the reported period
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