Yesterday, the FOMC Meeting Minutes were released following the Feds two day meeting. Much speculation was seen before as their comments were expected to be more dovish. As expected the Fed ended their quantitative easing problem but they also made hawkish remarks regarding the labour market which came as a surprise. Following the release U.S. stocks declined. The S&P 500 lost 0.14% and the Dow Jones lost 0.18%. Asian markets were mixed. The Nikkei climbed 0.647% as the Dollar strengthened against the Yen after the FOMC statement. The Hang Seng, however, dropped 0.49% as bank and energy shares declined. European markets are lower today. The German Unemployment Change was released and was significantly better than expected. Investors instead, focused on the Fed statement and sentiment dropped. Traders are also cautious as they are waiting for the German CPI to be released at 1PM GMT. Currently, The FTSE 100 is down 0.58% while Germany’s DAX is off 0.47% and France’s CAC 40 is lower by 0.08%.
WTI Crude climbed after the EIA released inventory data. The data showed supplies to increase by a lower amount than expected. Crude inventories only grew by 2.061M barrels in the past week compared to the expected 3.371M barrels, Distillate stocks declined by 5.294M barrels and gasoline declined by 1.236M. Gains were also seen following positive comments from the Fed regarding labour conditions. A better economic outlook could boost demand for the commodity. Gold dropped $25/ounce and is currently trading at $1205/ ounce. Gold lost its appeal as a safe haven asset as the Fed showed confidence in the economy. Many are now speculating that the Fed could be inclined to raise rates sooner and this dampens the appeal further. Today, traders should focus on the GDP report at 12.30 pm GMT and Janet Yellen’s speech at 1pm GMT. If Yellen makes any comments regarding interest rates and future monetary policy we should see short term volatility on the market.
Today’s Main Events:
09.00 GMT: EUR – German Unemployment Change – measures the change in the number of unemployed people during the previous month.
12.30 GMT: USD – GDP – measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy
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.
13.00 GMT: USD – Fed Chair Yellen Speaks – Due to deliver opening remarks at the Board of Governors of the Federal Reserve System’s National Summit on Diversity in the Economics Profession, in Washington DC;
13.00 GMT: EUR – German CPI – measures the changes in the price of goods and services purchased by consumers.
23.30 GMT: JPY – Household Spending – measures the change in the inflation-adjusted value of all expenditures by consumers.
October 30, 2014 – Daily Market News
Today’s Hot Assets: EUR, USD
Yesterday, the FOMC Meeting Minutes were released following the Feds two day meeting. Much speculation was seen before as their comments were expected to be more dovish. As expected the Fed ended their quantitative easing problem but they also made hawkish remarks regarding the labour market which came as a surprise. Following the release U.S. stocks declined. The S&P 500 lost 0.14% and the Dow Jones lost 0.18%. Asian markets were mixed. The Nikkei climbed 0.647% as the Dollar strengthened against the Yen after the FOMC statement. The Hang Seng, however, dropped 0.49% as bank and energy shares declined. European markets are lower today. The German Unemployment Change was released and was significantly better than expected. Investors instead, focused on the Fed statement and sentiment dropped. Traders are also cautious as they are waiting for the German CPI to be released at 1PM GMT. Currently, The FTSE 100 is down 0.58% while Germany’s DAX is off 0.47% and France’s CAC 40 is lower by 0.08%.
WTI Crude climbed after the EIA released inventory data. The data showed supplies to increase by a lower amount than expected. Crude inventories only grew by 2.061M barrels in the past week compared to the expected 3.371M barrels, Distillate stocks declined by 5.294M barrels and gasoline declined by 1.236M. Gains were also seen following positive comments from the Fed regarding labour conditions. A better economic outlook could boost demand for the commodity. Gold dropped $25/ounce and is currently trading at $1205/ ounce. Gold lost its appeal as a safe haven asset as the Fed showed confidence in the economy. Many are now speculating that the Fed could be inclined to raise rates sooner and this dampens the appeal further. Today, traders should focus on the GDP report at 12.30 pm GMT and Janet Yellen’s speech at 1pm GMT. If Yellen makes any comments regarding interest rates and future monetary policy we should see short term volatility on the market.
Today’s Main Events:
09.00 GMT: EUR – German Unemployment Change – measures the change in the number of unemployed people during the previous month.
12.30 GMT: USD – GDP – measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy
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.
13.00 GMT: USD – Fed Chair Yellen Speaks – Due to deliver opening remarks at the Board of Governors of the Federal Reserve System’s National Summit on Diversity in the Economics Profession, in Washington DC;
13.00 GMT: EUR – German CPI – measures the changes in the price of goods and services purchased by consumers.
23.30 GMT: JPY – Household Spending – measures the change in the inflation-adjusted value of all expenditures by consumers.
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