Disappointing company earnings lowered sentiment yesterday causing U.S. stocks to fall. Caterpillar shares, for example, declined 3.6% after a large drop in machinery sales during the last quarter. At session close, the S&P 500 was 0.65% lower and the Dow Jones was 0.83% lower. Asian shares were mixed during today’s session. The Hang Seng remained little changed, gaining 0.1%, after HSBC Holdings saw losses but state owned banks added support following comments from Zhu Baoliang, the director of the Economic Forecast Department. The Nikkei, however, lost 0.24% as the Yen strengthened against the Dollar due to the Bank of Japan maintaining their current monetary policy. The Bank will add a further 10 trillion Yen per year to the economy. European markets opened mixed ahead of European Parliamentary elections. Currently, the DAX is higher by 0.12%, while the CAC 40 is leading the FTSE 100 lower. They are down 0.27% and 0.17% respectively.
WTI Crude increased to a monthly high after the API reported that inventories dropped by 10.3million barrels. The geopolitical tension in Ukraine is also still in the spotlight as there are worries energy supplies could be disrupted. The EIA will release inventory data today at 2.30pm GMT. Gold has been ranging for several days as the market looks for direction. Investors should focus on the Fed’s Meeting Minutes which will be released at 6pm GMT. At the previous FOMC meeting, which the minutes denote, the Fed decided to further reduce the monetary stimulus by another $10 billion which came as no surprise. The question is, however, when the interest rate will be raised. Any suggestion that rates could be increased earlier will be bearish for Gold so traders should watch this release carefully.
Today’s Main Events:
08.30 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.
08.30 GMT: GBP – MPC Meeting Minutes – a detailed record of the Bank of England’s policy setting meeting, containing in-depth insights into the economic conditions that influenced the decision on where to set interest rates.
14.00 GMT: USD – FOMC Member Dudley Speaks – Due to speak about the regional economic outlook and labor market at the Quarterly Press Briefing, in New York. Audience questions expected
15.30 GMT: USD – Fed Chair Yellen Speaks – Due to deliver opening remarks at the New York University Graduates Commencement Ceremony
18.00 GMT: USD – FOMC Meeting Minutes – a detailed record of the committee’s policy-setting meeting held about two weeks earlier. The minutes offer detailed insights regarding the FOMC’s stance on monetary policy, so currency traders carefully examine them for clues regarding the outcome of future interest rate decisions.
May 21, 2014 – Daily Market News
Today’s Hot Assets: GBP, Oil, USD, Gold
Disappointing company earnings lowered sentiment yesterday causing U.S. stocks to fall. Caterpillar shares, for example, declined 3.6% after a large drop in machinery sales during the last quarter. At session close, the S&P 500 was 0.65% lower and the Dow Jones was 0.83% lower. Asian shares were mixed during today’s session. The Hang Seng remained little changed, gaining 0.1%, after HSBC Holdings saw losses but state owned banks added support following comments from Zhu Baoliang, the director of the Economic Forecast Department. The Nikkei, however, lost 0.24% as the Yen strengthened against the Dollar due to the Bank of Japan maintaining their current monetary policy. The Bank will add a further 10 trillion Yen per year to the economy. European markets opened mixed ahead of European Parliamentary elections. Currently, the DAX is higher by 0.12%, while the CAC 40 is leading the FTSE 100 lower. They are down 0.27% and 0.17% respectively.
WTI Crude increased to a monthly high after the API reported that inventories dropped by 10.3million barrels. The geopolitical tension in Ukraine is also still in the spotlight as there are worries energy supplies could be disrupted. The EIA will release inventory data today at 2.30pm GMT. Gold has been ranging for several days as the market looks for direction. Investors should focus on the Fed’s Meeting Minutes which will be released at 6pm GMT. At the previous FOMC meeting, which the minutes denote, the Fed decided to further reduce the monetary stimulus by another $10 billion which came as no surprise. The question is, however, when the interest rate will be raised. Any suggestion that rates could be increased earlier will be bearish for Gold so traders should watch this release carefully.
Today’s Main Events:
08.30 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.
08.30 GMT: GBP – MPC Meeting Minutes – a detailed record of the Bank of England’s policy setting meeting, containing in-depth insights into the economic conditions that influenced the decision on where to set interest rates.
14.00 GMT: USD – FOMC Member Dudley Speaks – Due to speak about the regional economic outlook and labor market at the Quarterly Press Briefing, in New York. Audience questions expected
15.30 GMT: USD – Fed Chair Yellen Speaks – Due to deliver opening remarks at the New York University Graduates Commencement Ceremony
18.00 GMT: USD – FOMC Meeting Minutes – a detailed record of the committee’s policy-setting meeting held about two weeks earlier. The minutes offer detailed insights regarding the FOMC’s stance on monetary policy, so currency traders carefully examine them for clues regarding the outcome of future interest rate decisions.
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