Janet Yellen, Head of the Federal Reserve spoke yesterday and reassured investors that interest rates will remain low even after unemployment and inflation figures improve further. Traders welcomed the news and stocks climbed. The S&P 500 gained 0.56% and the Dow Jones gained 0.72%. The Nasdaq, however, closed 0.3% lower as the selloff in technology shares continued with key losses in companies such as Yahoo and Twitter. Asian stocks moved higher following the positive sentiment in America. The Nikkei added 0.93% as the Dollar gained slightly against the Yen climbing to ¥101.90 from ¥101.502. The Hang Seng gained 0.42% after China’s Trade Balance came out much better than expected with a surplus of 18.45B. European stocks have opened higher ahead of Interest Rate Decisions from the Bank of England at 11 am GMT and from the European Central Bank at 11.45 GMT. Currently, the DAX is up 0.57% while London’s FTSE 100 is up 0.48% and France’s CAC 40 is up 0.46%.
WTI Crude reached a weekly high after inventory data from the EIA showed a decrease in stockpiles. Increasing tension in Ukraine also added support due to fears of a potential reduction in supplies. The price is now falling slightly as the tension is diminishing so traders should watch out for any updates. Gold dropped below the psychological $1,300 level despite Yellen’s comments that stimulus will be maintained. The yellow metal is losing its appeal in the face of continued tapering. Tension in Ukraine also declined after President Putin postponed a vote for autonomy and withdrew troops from the border resulting in less demand for safe haven assets.
Today’s Main Events:
11.00 GMT: GBP – Interest Rate Decision – Bank of England (BOE) monetary policy committee members vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
11.45 GMT: EUR – Interest Rate Decision – The six members of the European Central Bank (ECB) Executive Board and the 16 governors of the euro area central banks vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
12.30 GMT: EUR – ECB Press Conference – The European Central Bank (ECB) press conference is held monthly, about 45 minutes after the Minimum Bid Rate is announced. The conference is approximately an hour long and has two parts.
13.30 GMT: USD – Fed Chair Yellen Testifies – Due to testify about the economic outlook before the Senate Budget Committee, in Washington DC
13.30 GMT: USD – FOMC Member Tarullo Speaks – Due to speak at the Federal Reserve Bank’s Conference on Bank Structure and Competition, in Chicago
May 8, 2014 – Daily Market News
Today’s Hot Assets: USD, EUR, GBP
Janet Yellen, Head of the Federal Reserve spoke yesterday and reassured investors that interest rates will remain low even after unemployment and inflation figures improve further. Traders welcomed the news and stocks climbed. The S&P 500 gained 0.56% and the Dow Jones gained 0.72%. The Nasdaq, however, closed 0.3% lower as the selloff in technology shares continued with key losses in companies such as Yahoo and Twitter. Asian stocks moved higher following the positive sentiment in America. The Nikkei added 0.93% as the Dollar gained slightly against the Yen climbing to ¥101.90 from ¥101.502. The Hang Seng gained 0.42% after China’s Trade Balance came out much better than expected with a surplus of 18.45B. European stocks have opened higher ahead of Interest Rate Decisions from the Bank of England at 11 am GMT and from the European Central Bank at 11.45 GMT. Currently, the DAX is up 0.57% while London’s FTSE 100 is up 0.48% and France’s CAC 40 is up 0.46%.
WTI Crude reached a weekly high after inventory data from the EIA showed a decrease in stockpiles. Increasing tension in Ukraine also added support due to fears of a potential reduction in supplies. The price is now falling slightly as the tension is diminishing so traders should watch out for any updates. Gold dropped below the psychological $1,300 level despite Yellen’s comments that stimulus will be maintained. The yellow metal is losing its appeal in the face of continued tapering. Tension in Ukraine also declined after President Putin postponed a vote for autonomy and withdrew troops from the border resulting in less demand for safe haven assets.
Today’s Main Events:
11.00 GMT: GBP – Interest Rate Decision – Bank of England (BOE) monetary policy committee members vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
11.45 GMT: EUR – Interest Rate Decision – The six members of the European Central Bank (ECB) Executive Board and the 16 governors of the euro area central banks vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
12.30 GMT: EUR – ECB Press Conference – The European Central Bank (ECB) press conference is held monthly, about 45 minutes after the Minimum Bid Rate is announced. The conference is approximately an hour long and has two parts.
13.30 GMT: USD – Fed Chair Yellen Testifies – Due to testify about the economic outlook before the Senate Budget Committee, in Washington DC
13.30 GMT: USD – FOMC Member Tarullo Speaks – Due to speak at the Federal Reserve Bank’s Conference on Bank Structure and Competition, in Chicago
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