The European Central Bank cut their benchmark rate to 0.15% and reduced the deposit rate to -0.1%. This is the first time a major bank has used negative deposit rates and came in response to deflation fears. Draghi also added stimulus to the economy boosting optimism as it comes at a time when the U.S. is withdrawing stimulus. U.S. stocks jumped and reached record levels once again. The S&P 500 closed 0.65% higher at 1,940.46 and the Dow Jones closed 0.59% higher at 16,836.11. Asian stocks were little changed. The Nikkei closed 0.01% lower as the Dollar weakened against the Yen; the pair is now trading at ¥102.31. European stocks opened higher, benefitting from the additional stimulus. Currently, the FTSE 100 is up 0.24% while the DAX is up 0.05%. The CAC 40 is even. Attention will now be on today’s NFP report which will be released at 12.30 pm GMT.
WTI Crude declined due to increasing inventories but as the Dollar weakened the price rose again. Todays NFP report could give us an insight into the strength of the U.S economy and so we may see some movement after the release. Gold gained after the European Central Bank’s decision to lower rates and add stimulus. Easing is bullish for gold as the price increases in the face of additional currency. The weaker Dollar also pushed the metal up following weak employment data. Traders should focus on the NFP report today as there will probably be no movement before the release.
Today’s Main Events:
12.30 GMT: CAD – Employment Change – measures the change in the number of people employed. Job creation is an important indicator of consumer spending.
12.30 GMT: USD – Nonfarm Payrolls – measures the change in the number of people employed during the previous month, excluding the farming industry.
12.30 GMT: USD – Unemployment Rate – measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month.
June 6, 2014 – Daily Market News
Today’s Hot Assets: USD, Gold
The European Central Bank cut their benchmark rate to 0.15% and reduced the deposit rate to -0.1%. This is the first time a major bank has used negative deposit rates and came in response to deflation fears. Draghi also added stimulus to the economy boosting optimism as it comes at a time when the U.S. is withdrawing stimulus. U.S. stocks jumped and reached record levels once again. The S&P 500 closed 0.65% higher at 1,940.46 and the Dow Jones closed 0.59% higher at 16,836.11. Asian stocks were little changed. The Nikkei closed 0.01% lower as the Dollar weakened against the Yen; the pair is now trading at ¥102.31. European stocks opened higher, benefitting from the additional stimulus. Currently, the FTSE 100 is up 0.24% while the DAX is up 0.05%. The CAC 40 is even. Attention will now be on today’s NFP report which will be released at 12.30 pm GMT.
WTI Crude declined due to increasing inventories but as the Dollar weakened the price rose again. Todays NFP report could give us an insight into the strength of the U.S economy and so we may see some movement after the release. Gold gained after the European Central Bank’s decision to lower rates and add stimulus. Easing is bullish for gold as the price increases in the face of additional currency. The weaker Dollar also pushed the metal up following weak employment data. Traders should focus on the NFP report today as there will probably be no movement before the release.
Today’s Main Events:
12.30 GMT: CAD – Employment Change – measures the change in the number of people employed. Job creation is an important indicator of consumer spending.
12.30 GMT: USD – Nonfarm Payrolls – measures the change in the number of people employed during the previous month, excluding the farming industry.
12.30 GMT: USD – Unemployment Rate – measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month.
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