Following a choppy week, U.S. markets finished higher on Friday. Stocks began to recover their losses as fears over the global outlook subsided and positive earnings reports were released. Economic data from the U.S boosted sentiment with Consumer sentiment reaching a 7 year high of 78.4. At session close the S&P 500 was 1.29% higher and the Dow Jones was 1.63% higher. Asian markets climbed today following news that the Japanese Pension Investment Fund will increase shares in the foreign market. As a result the Yen dropped pushing exporters higher. The Hang Seng climbed 0.2% due to speculation that the government will add more stimulus to the economy. It is expected that China’s Central bank will inject 200 billion yuan into banks and lenders and consequently, bank shares moved higher. European markets are lower today as companies released worse than expected earnings. Sentiment in European markets is lower following weak data and fears of a recession. Currently, the DAX is down 1.67% while France’s CAC 40 is off 1.34% and London’s FTSE 100 is lower by 1.12%.
WTI Crude retraced some of its losses as some investors believed the sell- off was too strong. The market is currently waiting for a meeting by OPEC in Vienna next month. There is speculation that they could put output however countries such as Saudi Arabia, Kuwait and the UAE reportedly plan to oppose this. Investors will focus on data from China this week to gauge demand from the economy. Gold has moved higher due to worries over the global outlook. It is now expected that the Federal Reserve will not increase rates sooner than expected and that the final step of tapering could also be delayed. Make sure to pay attention to both Chinese data and the stock market. For now, the short term outlook for the metal is bullish but this could change quickly as the market recovers.
Today’s Main Events:
14.00 GMT: USD – FOMC Member Powell Speaks – Due to speak about community banking at the St. Louis Federal Reserve Webinar and Conference Call: Fed Perspective on Community Banking, via satellite
October 20, 2014 – Daily Market News
Today’s Hot Asset: Yen
Following a choppy week, U.S. markets finished higher on Friday. Stocks began to recover their losses as fears over the global outlook subsided and positive earnings reports were released. Economic data from the U.S boosted sentiment with Consumer sentiment reaching a 7 year high of 78.4. At session close the S&P 500 was 1.29% higher and the Dow Jones was 1.63% higher. Asian markets climbed today following news that the Japanese Pension Investment Fund will increase shares in the foreign market. As a result the Yen dropped pushing exporters higher. The Hang Seng climbed 0.2% due to speculation that the government will add more stimulus to the economy. It is expected that China’s Central bank will inject 200 billion yuan into banks and lenders and consequently, bank shares moved higher. European markets are lower today as companies released worse than expected earnings. Sentiment in European markets is lower following weak data and fears of a recession. Currently, the DAX is down 1.67% while France’s CAC 40 is off 1.34% and London’s FTSE 100 is lower by 1.12%.
WTI Crude retraced some of its losses as some investors believed the sell- off was too strong. The market is currently waiting for a meeting by OPEC in Vienna next month. There is speculation that they could put output however countries such as Saudi Arabia, Kuwait and the UAE reportedly plan to oppose this. Investors will focus on data from China this week to gauge demand from the economy. Gold has moved higher due to worries over the global outlook. It is now expected that the Federal Reserve will not increase rates sooner than expected and that the final step of tapering could also be delayed. Make sure to pay attention to both Chinese data and the stock market. For now, the short term outlook for the metal is bullish but this could change quickly as the market recovers.
Today’s Main Events:
14.00 GMT: USD – FOMC Member Powell Speaks – Due to speak about community banking at the St. Louis Federal Reserve Webinar and Conference Call: Fed Perspective on Community Banking, via satellite
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