The chances of a military conflict in Ukraine are diminishing. The Russian President, Putin, said that they reserve the right to use force in Crimea in the event of “lawlessness” but stated that such an occurrence would be a last resort. This came after news that Russian troops on a military drill were called back to their bases. Stocks rose as investors speculated that the situation will most likely not escalate further. The S&P 500 closed 1.53% higher and the Dow Jones closed 1.41% higher. Asian shares were mixed. The Nikkei climbed 1.2% as the Yen continued to weaken against the Dollar. The Hang Seng, however, declined 0.34% as the Chinese HSBC Manufacturing PMI indicated a slowdown in the economy. Attention in Asia will now turn to the National People’s Congress meeting in China. The meeting will be watched for any signs on whether government officials will introduce anything new to reshape China’s economy. Asian investors are also preparing for a potential default in the country’s bond market. European shares are lower after a range of Services PMI data came out better than expected from across the Euro zone and GDP came out on target.
WTI Crude declined almost 2% as the threat of disruptions linked to the geopolitical situation in Ukraine fell. The API released yesterday that U.S. crude inventories rose by 1.2 million barrels in the week ending February 28, compared to expectations for an increase of 1.5 million barrels. Traders are now looking ahead to today’s inventory data from the EIA at 3.30pm (GMT). After rallying following tension in Ukraine, Gold declined 2% yesterday. Attention will turn to key US data being released later in the day. The ADP Nonfarm Employment Change will be released at 1.15pm (GMT) and the ISM Non-Manufacturing PMI will be released at 3pm (GMT).
Today’s Main Events:
13.15 GMT: USD – ADP Nonfarm Employment Change – a measure of the monthly change in non-farm, private employment, based on the payroll data of approximately 400,000 U.S. business clients
15.00 GMT: CAD – Interest Rate Decision – Bank of Canada (BOC) governing council members come to a consensus on where to set the rate.
15.00 GMT: USD – ISM Non-Manufacturing PMI – The Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers’ Index (PMI) report on Business, a composite index is calculated as an indicator of the overall economic condition for the non-manufacturing sector.
March 5, 2014 – Daily Market News
Today’s Hot Assets: EUR, USD, CAD
The chances of a military conflict in Ukraine are diminishing. The Russian President, Putin, said that they reserve the right to use force in Crimea in the event of “lawlessness” but stated that such an occurrence would be a last resort. This came after news that Russian troops on a military drill were called back to their bases. Stocks rose as investors speculated that the situation will most likely not escalate further. The S&P 500 closed 1.53% higher and the Dow Jones closed 1.41% higher. Asian shares were mixed. The Nikkei climbed 1.2% as the Yen continued to weaken against the Dollar. The Hang Seng, however, declined 0.34% as the Chinese HSBC Manufacturing PMI indicated a slowdown in the economy. Attention in Asia will now turn to the National People’s Congress meeting in China. The meeting will be watched for any signs on whether government officials will introduce anything new to reshape China’s economy. Asian investors are also preparing for a potential default in the country’s bond market. European shares are lower after a range of Services PMI data came out better than expected from across the Euro zone and GDP came out on target.
WTI Crude declined almost 2% as the threat of disruptions linked to the geopolitical situation in Ukraine fell. The API released yesterday that U.S. crude inventories rose by 1.2 million barrels in the week ending February 28, compared to expectations for an increase of 1.5 million barrels. Traders are now looking ahead to today’s inventory data from the EIA at 3.30pm (GMT). After rallying following tension in Ukraine, Gold declined 2% yesterday. Attention will turn to key US data being released later in the day. The ADP Nonfarm Employment Change will be released at 1.15pm (GMT) and the ISM Non-Manufacturing PMI will be released at 3pm (GMT).
Today’s Main Events:
13.15 GMT: USD – ADP Nonfarm Employment Change – a measure of the monthly change in non-farm, private employment, based on the payroll data of approximately 400,000 U.S. business clients
15.00 GMT: CAD – Interest Rate Decision – Bank of Canada (BOC) governing council members come to a consensus on where to set the rate.
15.00 GMT: USD – ISM Non-Manufacturing PMI – The Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers’ Index (PMI) report on Business, a composite index is calculated as an indicator of the overall economic condition for the non-manufacturing sector.
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