U.S. stocks continued to drop as U.S. data came out positive once again further sparking speculation that the Federal Reserve could higher interest rates sooner. The ADP Nonfarm Employment Change showed that 213K jobs were added during the past month, above the expected 210k. This report acts as pre NFP data and could provide into what to expect this coming Friday. Although the ISM Manufacturing PMI came out below expectations the result was still high and showed one of the strongest increases in four years. At session close the S&P 500 was 1.32% lower and the Dow Jones was 1.4% lower. Markets in Japan experienced a strong drop closing 2.61% lower. This came as the Yen strengthened against the U.S. Dollar with the Dollar trading at ¥108.84 compared to highs of almost ¥110 one day earlier. The Hang Seng remained closed due to the Chung Yeung Day holiday. European markets are lower today as investors are anticipating the interest rate decision from the European Central Bank and a press conference from the President, Mario Draghi. Draghi has already hinted that a possible way to fight decreasing inflation would be to increase the balance sheet by 1 trillion Euros and traders are eager for more details. During mid trade the CAC 40 is down 0.26% while London’s FTSE 100 is off 0.21% and Germany’s DAX is lower by 0.09%.
WTI Crude fell to a 17 month low. The drop came after Saudi Arabia cut its selling prices to the U.S., Europe and Asia. It appears that supply is currently greater than demand, pressuring prices lower. The EIA also reported that crude stock rose by 315,000 barrels in the previous week. Yesterday, Gold rebounded and during the Asian session the price climbed above $1,220/ounce. The price reacted to the weaker dollar as well as to the poor performance of the stock market. Today, the price is trading choppy as investors wait for tomorrow’s NFP report.
Today’s Main Events:
08.30 GMT: GBP – Construction PMI – measures the activity level of purchasing managers in the construction industry
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
12.30 GMT: USD – Initial Jobless Claims – measures the number of individuals who filed for unemployment insurance for the first time during the past week.
12.30 GMT: USD – ECB Press Conference – held monthly, about 45 minutes after the Minimum Bid Rate is announced
October 2, 2014 – Daily Market News
Today’s Hot Asset: EUR
U.S. stocks continued to drop as U.S. data came out positive once again further sparking speculation that the Federal Reserve could higher interest rates sooner. The ADP Nonfarm Employment Change showed that 213K jobs were added during the past month, above the expected 210k. This report acts as pre NFP data and could provide into what to expect this coming Friday. Although the ISM Manufacturing PMI came out below expectations the result was still high and showed one of the strongest increases in four years. At session close the S&P 500 was 1.32% lower and the Dow Jones was 1.4% lower. Markets in Japan experienced a strong drop closing 2.61% lower. This came as the Yen strengthened against the U.S. Dollar with the Dollar trading at ¥108.84 compared to highs of almost ¥110 one day earlier. The Hang Seng remained closed due to the Chung Yeung Day holiday. European markets are lower today as investors are anticipating the interest rate decision from the European Central Bank and a press conference from the President, Mario Draghi. Draghi has already hinted that a possible way to fight decreasing inflation would be to increase the balance sheet by 1 trillion Euros and traders are eager for more details. During mid trade the CAC 40 is down 0.26% while London’s FTSE 100 is off 0.21% and Germany’s DAX is lower by 0.09%.
WTI Crude fell to a 17 month low. The drop came after Saudi Arabia cut its selling prices to the U.S., Europe and Asia. It appears that supply is currently greater than demand, pressuring prices lower. The EIA also reported that crude stock rose by 315,000 barrels in the previous week. Yesterday, Gold rebounded and during the Asian session the price climbed above $1,220/ounce. The price reacted to the weaker dollar as well as to the poor performance of the stock market. Today, the price is trading choppy as investors wait for tomorrow’s NFP report.
Today’s Main Events:
08.30 GMT: GBP – Construction PMI – measures the activity level of purchasing managers in the construction industry
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
12.30 GMT: USD – Initial Jobless Claims – measures the number of individuals who filed for unemployment insurance for the first time during the past week.
12.30 GMT: USD – ECB Press Conference – held monthly, about 45 minutes after the Minimum Bid Rate is announced
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