The US Federal Reserve decided during their monthly monetary policy meeting to reduce quantitative easing by another $10 Billion to $65 Billion. Economic activity is continuing to pick up and continuous improvement is still being seen in the labor market. This brings uncertainty to stocks as investors are unsure how they will perform without the monetary stimulus in place. As a result US stocks declined; at the end of the session the S&P 500 was 1.02% lower and the Dow Jones was 1.19% lower. Confusion also remains regarding emerging markets and their performance in the face of stimulus cuts and a slowdown in China. Consequently, Asian stocks also fell, being further pushed by the lower than expected Chinese HSBC Manufacturing PMI data. The Hang Seng lost 0.48% while the Nikkei lost 2.45%. European stocks have opened lower and look set for more losses throughout the day.
WTI saw some losses after the API reported higher than expected stockpiles of Crude. Today,the price is moving higher after the Fed further cut its monthly bond buying program. Investors should await key data being released later in the day including US GDP at 1.30 pm (GMT) and Pending Home Sales 3 pm (GMT) which may give us an insight into demand for the commodity. Gold increased yesterday as physical demand from China pulled the metal higher. The price also gained due to uncertainty in emerging markets like Turkey and South Africa following a hike in interest rates. The price is now falling as investors are digesting the news of further tapering and the Dollar is making some gains.
Today’s Main Events:
09.00 GMT: EUR – German Unemployment Rate – measures the percentage of the total work force that is unemployed and actively seeking employment during the reported month.
13.30 GMT: USD – GDP (QoQ) – measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy
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: USD – Pending Home Sales (MoM) – measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.
21.45 GMT: NZD – Trade Balance – measures the difference in value between imported and exported goods and services over the reported period
23.30 GMT: JPY – Tokyo CPI – measures the change in the price of goods and services purchased by consumers in Tokyo, excluding fresh food.
23.50 GMT: JPY – Industrial Production (MoM) – measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
January 30, 2014 – Daily Market News
Today’s Hot Assets: USD, JPY
The US Federal Reserve decided during their monthly monetary policy meeting to reduce quantitative easing by another $10 Billion to $65 Billion. Economic activity is continuing to pick up and continuous improvement is still being seen in the labor market. This brings uncertainty to stocks as investors are unsure how they will perform without the monetary stimulus in place. As a result US stocks declined; at the end of the session the S&P 500 was 1.02% lower and the Dow Jones was 1.19% lower. Confusion also remains regarding emerging markets and their performance in the face of stimulus cuts and a slowdown in China. Consequently, Asian stocks also fell, being further pushed by the lower than expected Chinese HSBC Manufacturing PMI data. The Hang Seng lost 0.48% while the Nikkei lost 2.45%. European stocks have opened lower and look set for more losses throughout the day.
WTI saw some losses after the API reported higher than expected stockpiles of Crude. Today,the price is moving higher after the Fed further cut its monthly bond buying program. Investors should await key data being released later in the day including US GDP at 1.30 pm (GMT) and Pending Home Sales 3 pm (GMT) which may give us an insight into demand for the commodity. Gold increased yesterday as physical demand from China pulled the metal higher. The price also gained due to uncertainty in emerging markets like Turkey and South Africa following a hike in interest rates. The price is now falling as investors are digesting the news of further tapering and the Dollar is making some gains.
Today’s Main Events:
09.00 GMT: EUR – German Unemployment Rate – measures the percentage of the total work force that is unemployed and actively seeking employment during the reported month.
13.30 GMT: USD – GDP (QoQ) – measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy
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: USD – Pending Home Sales (MoM) – measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.
21.45 GMT: NZD – Trade Balance – measures the difference in value between imported and exported goods and services over the reported period
23.30 GMT: JPY – Tokyo CPI – measures the change in the price of goods and services purchased by consumers in Tokyo, excluding fresh food.
23.50 GMT: JPY – Industrial Production (MoM) – measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
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