The US President, Obama, spoke yesterday in Brussels. He stated that further economic sanctions could be introduced against Russia and that allies should not be complacent. US stocks opened the day in positive figures following a mix of positive data and speculation of stimulus measures in both Europe and Russia. However, Obama’s speech reinstated caution and investors once again became risk averse, sending stocks lower. At the close of trading the S&P 500 was 0.7% lower and the Dow Jones was 0.6% lower. Asian markets were mixed. The Nikkei gained 1.01% as the Yen strengthened against the US dollar as a safe haven asset. The Hang Seng, however, declined 0.24% as its main component, Tencent, traded almost 6% lower after buying $500 million worth of CJ Games, a Korean mobile gaming firm. European stocks opened the day lower as concerns about Russia returned. Losses remained limited, however, as talks of additional stimulus by the ECB supported equities. During morning trade, the Euro Stoxx 50 fell 0.27%, the CAC40 retreated 0.43% and the Dax slid 0.36%.
WTI Crude is climbing after President Obama also stated that further sanctions placed on Russia could involve the energy sector. Supply is also lower as political unrest is ongoing in Libya and ports remain closed. In addition to this, stockpiles declined at the main US storage hub and Gasoline demand reached a 3 month high with the EIA reported a decline in inventories. Gold continued to fall yesterday after positive US data. Yellens comments about raising interest rates have also added pressure to the price. Surprisingly, potential escalation in the Crimea did nothing to increase Gold’s value, as traders are more optimistic about the prospects of the US economy in both the short and long term. Traders should watch US data today including GDP at 12.30 pm GMT and Pending Home Sales at 2pm GMT.
Today’s Main Events:
09.30 GMT: GBP – Retail Sales – measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.
12.30 GMT: USD – GDP – measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy
14.00 GMT: USD – Pending Home Sales – measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.
March 27, 2014 – Daily Market News
Today’s Hot Assets: GBP, USD, Gold
The US President, Obama, spoke yesterday in Brussels. He stated that further economic sanctions could be introduced against Russia and that allies should not be complacent. US stocks opened the day in positive figures following a mix of positive data and speculation of stimulus measures in both Europe and Russia. However, Obama’s speech reinstated caution and investors once again became risk averse, sending stocks lower. At the close of trading the S&P 500 was 0.7% lower and the Dow Jones was 0.6% lower. Asian markets were mixed. The Nikkei gained 1.01% as the Yen strengthened against the US dollar as a safe haven asset. The Hang Seng, however, declined 0.24% as its main component, Tencent, traded almost 6% lower after buying $500 million worth of CJ Games, a Korean mobile gaming firm. European stocks opened the day lower as concerns about Russia returned. Losses remained limited, however, as talks of additional stimulus by the ECB supported equities. During morning trade, the Euro Stoxx 50 fell 0.27%, the CAC40 retreated 0.43% and the Dax slid 0.36%.
WTI Crude is climbing after President Obama also stated that further sanctions placed on Russia could involve the energy sector. Supply is also lower as political unrest is ongoing in Libya and ports remain closed. In addition to this, stockpiles declined at the main US storage hub and Gasoline demand reached a 3 month high with the EIA reported a decline in inventories. Gold continued to fall yesterday after positive US data. Yellens comments about raising interest rates have also added pressure to the price. Surprisingly, potential escalation in the Crimea did nothing to increase Gold’s value, as traders are more optimistic about the prospects of the US economy in both the short and long term. Traders should watch US data today including GDP at 12.30 pm GMT and Pending Home Sales at 2pm GMT.
Today’s Main Events:
09.30 GMT: GBP – Retail Sales – measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.
12.30 GMT: USD – GDP – measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy
14.00 GMT: USD – Pending Home Sales – measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.
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