Today the new Fed chairwoman, Janet Yellen, will be speaking about the Semiannual Monetary Policy Report before the House Financial Services Committee. Although Yellen isn’t expected to bring anything new to the market, traders are eager to hear any clues about the banks plans for further tapering following recent US data. US stocks rose in anticipation of the event and after companies such as Apple and Tesla posted modest gains. At the close of US trading, the S&P 500 was 0.16% higher and the Dow Jones was 0.05% higher. Asian stocks advanced the most since November after JPMorgan Chase & Co predicted a rally for Chinese shares. The Nikkei climbed 1.77% and the Hang Seng climbed 1.78%. European stocks have also opened higher in cautious trade ahead of the testimony. During early trade the EURO STOXX 50 gained 0.98%, France’s CAC 40 climbed 0.75% and while Germany’s DAX 30 jumped 0.97%.
WTI is trading at a 6 week high above $100/ barrel amid speculation that stockpiles declined due to the cold snap in the US. The API will be releasing their data later today at 9.30 pm (GMT). If Yellen is dovish at today’s testimony we can expect the Dollar to weaken and might see more gains for the commodity. Gold is trading at its highest level of the year. There is speculation that Yellen could slow down the pace of tapering which would be positive for Gold. However, traders should be careful as the actual Unemployment Rate was 6.6%, the lowest since 2008, which could suggest weakness in other figures is due to the weather and does not provide an accurate view of the economy.
Today’s Main Events:
15.00 GMT: USD – Fed Chair Yellen Testifies – Federal Reserve Chair Jannet Yellen (February 2014 – February 2018) is to testify on the economic outlook and recent monetary policy actions before the Joint Economic Committee, in Washington DC. The testimony is in two parts; the first is a prepared statement, then the committee conducts a question and answer session. The Q&A portion of the testimony can see heavy market volatility for the duration.
23.30 GMT: AUD – Westpac Consumer Sentiment – The Westpac Consumer Sentiment Index measures the change in the level of consumer confidence in economic activity.
23.50 GMT: JPY – Tertiary Industry Activity Index (MoM) – The Tertiary Industry Index measures the change in the total value of services purchased by businesses. It is a leading indicator of economic health.
February 11, 2014 – Daily Market News
Today’s Hot Assets: Gold, USD, WTI Crude Oil
Today the new Fed chairwoman, Janet Yellen, will be speaking about the Semiannual Monetary Policy Report before the House Financial Services Committee. Although Yellen isn’t expected to bring anything new to the market, traders are eager to hear any clues about the banks plans for further tapering following recent US data. US stocks rose in anticipation of the event and after companies such as Apple and Tesla posted modest gains. At the close of US trading, the S&P 500 was 0.16% higher and the Dow Jones was 0.05% higher. Asian stocks advanced the most since November after JPMorgan Chase & Co predicted a rally for Chinese shares. The Nikkei climbed 1.77% and the Hang Seng climbed 1.78%. European stocks have also opened higher in cautious trade ahead of the testimony. During early trade the EURO STOXX 50 gained 0.98%, France’s CAC 40 climbed 0.75% and while Germany’s DAX 30 jumped 0.97%.
WTI is trading at a 6 week high above $100/ barrel amid speculation that stockpiles declined due to the cold snap in the US. The API will be releasing their data later today at 9.30 pm (GMT). If Yellen is dovish at today’s testimony we can expect the Dollar to weaken and might see more gains for the commodity. Gold is trading at its highest level of the year. There is speculation that Yellen could slow down the pace of tapering which would be positive for Gold. However, traders should be careful as the actual Unemployment Rate was 6.6%, the lowest since 2008, which could suggest weakness in other figures is due to the weather and does not provide an accurate view of the economy.
Today’s Main Events:
15.00 GMT: USD – Fed Chair Yellen Testifies – Federal Reserve Chair Jannet Yellen (February 2014 – February 2018) is to testify on the economic outlook and recent monetary policy actions before the Joint Economic Committee, in Washington DC. The testimony is in two parts; the first is a prepared statement, then the committee conducts a question and answer session. The Q&A portion of the testimony can see heavy market volatility for the duration.
23.30 GMT: AUD – Westpac Consumer Sentiment – The Westpac Consumer Sentiment Index measures the change in the level of consumer confidence in economic activity.
23.50 GMT: JPY – Tertiary Industry Activity Index (MoM) – The Tertiary Industry Index measures the change in the total value of services purchased by businesses. It is a leading indicator of economic health.
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