The US ADP Nonfarm Employment Change came out below expectations increasing uncertainty around the economic outlook. Markets are becoming increasingly cautious as it boosts speculation that tomorrows NFP report could also be a disappointment. Stocks declined but losses were limited as weak data can most likely be attributed to the bad weather in the US. At the close of U.S. trading, the Dow Jones Industrial Average fell 0.03% and the S&P 500 index fell 0.20%. Asian markets were given a negative lead from the US and stocks finished mixed. The Nikkei declined 0.18% while the Hang Seng declined 0.61%. European stocks opened higher ahead of the ECB’s Interest Rate Decision at 12.45pm (GMT) and the Press Conference from Mario Draghi at 1.30 pm (GMT). Some Analysts are predicting that the bank could further cut rates as disinflation is still a problem for the Eurozone. This will be a key event and will most likely cause a lot of volatility. The Bank of England will also be releasing Interest Rate Decision at 12 pm GMT.
Crude oil inventories declined for another week sending WTI prices higher, however, signs of weaker demand from the US (from weaker data including the ADP labor figure)caused the price to fall. It is now inching higher as the cold weather in the US is an ongoing feature boosting demand for heating fuel. Investors should watch economic data carefully to further gauge the strength of demand in the economy. Gold prices are higher following the US data. Signs of a weaker economy are suggesting that the Fed may not further increase tapering at their next policy meeting. The price remained higher due to the bearish sentiment in the stock market. The Asian market will reopen tomorrow after a weekly break for the New Year so we could see physical demand pick up during the Asian session. Traders should watch US data as predictors for tomorrows NFP report which will be at 1.30 pm (GMT).
Today’s Main Events
12.00 GMT: GBP – BoE QE Total – The Bank of England electronically creates new money and uses it to purchase gilts from private investors such as pension funds and insurance companies.
12.00 GMT: GBP – Interest Rate Decision – Bank of England (BOE) monetary policy committee members vote on where to set the rate.
12.45 GMT: EUR – Interest Rate Decision – The six members of the European Central Bank (ECB) Executive Board and the 16 governors of the euro area central banks vote on where to set the rate
13.30 GMT: EUR – ECB Press Conference – held monthly, about 45 minutes after the Minimum Bid Rate is announced. The conference is approximately an hour long and has two parts. Firstly, a prepared statement is read, then the conference is open to press questions. The press conference examines the factors which affected the ECB’s interest rate decision and deals with the overall economic outlook and inflation. Most importantly, it provides clues regarding future monetary policy
13.30 GMT: USD – Initial Jobless Claims – measures the number of individuals who filed for unemployment insurance for the first time during the past week
15.00 GMT: CAD – Ivey PMI – measures the activity level of purchasing managers in Canada. A reading above 50 indicates expansion; a reading below 50 indicates contraction
22.30 GMT: USD – FOMC Member Rosengren Speaks – FOMC members are responsible for setting the benchmark interest rate and their speeches are closely watched for indications on the future possible direction of monetary policy.
February 6, 2014 – Daily Market News
Today’s Hot Assets: EUR, GBP, USD
The US ADP Nonfarm Employment Change came out below expectations increasing uncertainty around the economic outlook. Markets are becoming increasingly cautious as it boosts speculation that tomorrows NFP report could also be a disappointment. Stocks declined but losses were limited as weak data can most likely be attributed to the bad weather in the US. At the close of U.S. trading, the Dow Jones Industrial Average fell 0.03% and the S&P 500 index fell 0.20%. Asian markets were given a negative lead from the US and stocks finished mixed. The Nikkei declined 0.18% while the Hang Seng declined 0.61%. European stocks opened higher ahead of the ECB’s Interest Rate Decision at 12.45pm (GMT) and the Press Conference from Mario Draghi at 1.30 pm (GMT). Some Analysts are predicting that the bank could further cut rates as disinflation is still a problem for the Eurozone. This will be a key event and will most likely cause a lot of volatility. The Bank of England will also be releasing Interest Rate Decision at 12 pm GMT.
Crude oil inventories declined for another week sending WTI prices higher, however, signs of weaker demand from the US (from weaker data including the ADP labor figure)caused the price to fall. It is now inching higher as the cold weather in the US is an ongoing feature boosting demand for heating fuel. Investors should watch economic data carefully to further gauge the strength of demand in the economy. Gold prices are higher following the US data. Signs of a weaker economy are suggesting that the Fed may not further increase tapering at their next policy meeting. The price remained higher due to the bearish sentiment in the stock market. The Asian market will reopen tomorrow after a weekly break for the New Year so we could see physical demand pick up during the Asian session. Traders should watch US data as predictors for tomorrows NFP report which will be at 1.30 pm (GMT).
Today’s Main Events
12.00 GMT: GBP – BoE QE Total – The Bank of England electronically creates new money and uses it to purchase gilts from private investors such as pension funds and insurance companies.
12.00 GMT: GBP – Interest Rate Decision – Bank of England (BOE) monetary policy committee members vote on where to set the rate.
12.45 GMT: EUR – Interest Rate Decision – The six members of the European Central Bank (ECB) Executive Board and the 16 governors of the euro area central banks vote on where to set the rate
13.30 GMT: EUR – ECB Press Conference – held monthly, about 45 minutes after the Minimum Bid Rate is announced. The conference is approximately an hour long and has two parts. Firstly, a prepared statement is read, then the conference is open to press questions. The press conference examines the factors which affected the ECB’s interest rate decision and deals with the overall economic outlook and inflation. Most importantly, it provides clues regarding future monetary policy
13.30 GMT: USD – Initial Jobless Claims – measures the number of individuals who filed for unemployment insurance for the first time during the past week
15.00 GMT: CAD – Ivey PMI – measures the activity level of purchasing managers in Canada. A reading above 50 indicates expansion; a reading below 50 indicates contraction
22.30 GMT: USD – FOMC Member Rosengren Speaks – FOMC members are responsible for setting the benchmark interest rate and their speeches are closely watched for indications on the future possible direction of monetary policy.
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