Tension escalated in Iraq yesterday as militants fought government forces seized the city of Kirkuk. Iraq is close to a civil war and as a main oil producer, a surge in oil prices would hinder the global economy. U.S stocks fell due to the uncertainty and as the market received worse than expected Retail Sales and Jobless Claims data. At session close the S&P 500 was 0.71% lower and the Dow Jones was 0.65% lower. Asian stocks, however, climbed today shrugging off the turmoil. Following positive data, it seemed that China is pumping additional funds into the economy in an attempt to boost the economy. Both Chinese Fixed Asset Investment and Retail Sales beat expectations bringing positivity into the market and the Hang Seng closed 0.69% higher. The Nikkei added 0.83% after the Bank of Japan made no change to monetary policy and as the Dollar moved higher against the Yen.
WTI Crude soared as Iraqi tension intensified. The commodity is now trading above $107/barrel, its highest close since September. Iraq is the world’s 8th largest producer of oil and a spike in prices could be bad for the economy. The biggest threat to the market would be if militants took Baghdad and moved to the oil patch. Gold also climbed with the tension. Weakness in equities and weak U.S. data also helped to push the metal to a 3 week high.
Today’s Main Events:
12.30 GMT: USD – PPI – measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation
14.00 GMT: USD – Michigan Consumer Sentiment – rates the relative level of current and future economic conditions
June 13, 2014 – Daily Market News
Today’s Hot Assets: Oil, USD
Tension escalated in Iraq yesterday as militants fought government forces seized the city of Kirkuk. Iraq is close to a civil war and as a main oil producer, a surge in oil prices would hinder the global economy. U.S stocks fell due to the uncertainty and as the market received worse than expected Retail Sales and Jobless Claims data. At session close the S&P 500 was 0.71% lower and the Dow Jones was 0.65% lower. Asian stocks, however, climbed today shrugging off the turmoil. Following positive data, it seemed that China is pumping additional funds into the economy in an attempt to boost the economy. Both Chinese Fixed Asset Investment and Retail Sales beat expectations bringing positivity into the market and the Hang Seng closed 0.69% higher. The Nikkei added 0.83% after the Bank of Japan made no change to monetary policy and as the Dollar moved higher against the Yen.
WTI Crude soared as Iraqi tension intensified. The commodity is now trading above $107/barrel, its highest close since September. Iraq is the world’s 8th largest producer of oil and a spike in prices could be bad for the economy. The biggest threat to the market would be if militants took Baghdad and moved to the oil patch. Gold also climbed with the tension. Weakness in equities and weak U.S. data also helped to push the metal to a 3 week high.
Today’s Main Events:
12.30 GMT: USD – PPI – measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation
14.00 GMT: USD – Michigan Consumer Sentiment – rates the relative level of current and future economic conditions
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