Technology stocks rebounded yesterday pulling U.S. stocks higher. Risk Appetite returned and investors turned their attention to the FOMC Statement which will be released today at 6pm GMT. Recent U.S. data has been mostly strong and has shown continuous improvement in the economy and so the Fed is expected to continue the current pace of tapering and reduce quantitative easing by a further $10 Billion. At session close, the S&P 500 was 0.48% higher and the Dow Jones was 0.53% higher. Asian markets were mixed. The Hang Seng lost 1.43% after an earlier rally following disappointing corporate earnings. The Nikkei, however, gained 0.11% after the Bank of Japan made no change to their monetary policy causing the Yen to fall slightly and stocks to gain. European stocks started the day mixed ahead of the CPI data which will be released at 9am GMT. A lower than expected figure could push Draghi to increase monetary easing and consequently weaken the Euro.
WTI Crude dropped strongly after the API released inventory data showing gains in stockpiles boosting speculation the EIA will report similar findings today. The EIA reported that inventories climbed to their highest level on record last week and clearly this is bearish on the price. Gold is declining ahead of the Fed Statement and U.S. data later in the day. Tapering has pushed Gold lower as typically the metal moves inversely to the Dollar which strengthens as quantitative easing is reduced. U.S. data will be in focus for commodities traders throughout the day including ADP Nonfarm Employment Change at 12.15 GMT and GDP at 12.30pm GMT.
Today’s Main Events:
09.00 GMT: EUR – CPI – measures the change in the price of goods and services from the perspective of the consumer
12.15 GMT: USD – ADP Nonfarm Employment Change – a measure of the monthly change in non-farm, private employment, based on the payroll data of approximately 400,000 U.S. business clients
12.30 GMT: CAD – GDP – measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy
12.30 GMT: USD – GDP – measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy.
18.00 GMT: USD – FOMC Statement – the primary tool the panel uses to communicate with investors about monetary policy.
18.00 GMT: USD – Interest Rate Decision – Federal Open Market Committee (FOMC) members vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
April 30, 2014 – Daily Market News
Today’s Hot Assets: EUR, CAD, USD, Oil
Technology stocks rebounded yesterday pulling U.S. stocks higher. Risk Appetite returned and investors turned their attention to the FOMC Statement which will be released today at 6pm GMT. Recent U.S. data has been mostly strong and has shown continuous improvement in the economy and so the Fed is expected to continue the current pace of tapering and reduce quantitative easing by a further $10 Billion. At session close, the S&P 500 was 0.48% higher and the Dow Jones was 0.53% higher. Asian markets were mixed. The Hang Seng lost 1.43% after an earlier rally following disappointing corporate earnings. The Nikkei, however, gained 0.11% after the Bank of Japan made no change to their monetary policy causing the Yen to fall slightly and stocks to gain. European stocks started the day mixed ahead of the CPI data which will be released at 9am GMT. A lower than expected figure could push Draghi to increase monetary easing and consequently weaken the Euro.
WTI Crude dropped strongly after the API released inventory data showing gains in stockpiles boosting speculation the EIA will report similar findings today. The EIA reported that inventories climbed to their highest level on record last week and clearly this is bearish on the price. Gold is declining ahead of the Fed Statement and U.S. data later in the day. Tapering has pushed Gold lower as typically the metal moves inversely to the Dollar which strengthens as quantitative easing is reduced. U.S. data will be in focus for commodities traders throughout the day including ADP Nonfarm Employment Change at 12.15 GMT and GDP at 12.30pm GMT.
Today’s Main Events:
09.00 GMT: EUR – CPI – measures the change in the price of goods and services from the perspective of the consumer
12.15 GMT: USD – ADP Nonfarm Employment Change – a measure of the monthly change in non-farm, private employment, based on the payroll data of approximately 400,000 U.S. business clients
12.30 GMT: CAD – GDP – measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy
12.30 GMT: USD – GDP – measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy.
18.00 GMT: USD – FOMC Statement – the primary tool the panel uses to communicate with investors about monetary policy.
18.00 GMT: USD – Interest Rate Decision – Federal Open Market Committee (FOMC) members vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
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