U.S. stocks climbed as GDP data came out above expectations. Third quarter Gross Domestic Product increased 3.5%. Strong gains were seen the day before after the Fed decided to end quantitative easing and made hawkish remarks regarding the labour market. The S&P 500 closed 0.62% higher and the Dow Jones closed 1.3% higher. Asian markets rallied as the Bank of Japan made a surprising decision to extend monetary stimulus. The Nikkei as a result gained 4.83% and exporters were boosted. The Hang Seng added 1.25% due to reports that tests will be held this weekend for the China – Shanghai trading link. European markets are higher today in reaction to the Bank of Japan’s decision. Gains are also being seen after the European CPI increased by 0.4%, up from 0.3% last month. Currently, the CAC 40 is up 2.17% while Germany’s DAX is up 1.93% and London’s FTSE 100 is up 1.09%.
WTI Crude has decreased sharply despite positive U.S. GDP data. The drop is being caused by the U.S. dollar which is appreciating from decisions by the Bank of Japan and Federal Reserve. Further pressure was added to the price as OPEC boosted production to a 14 month high. Gold also declined strongly and is currently trading around $1,164/ounce, its lowest price since 2010. Hawkish comments from the Federal Reserve boosted sentiment and increased the outlook for the economy making Gold a less attractive asset.
Today’s Main Events:
10.00 GMT: EUR –CPI – measures the change in the price of goods and services from the perspective of the consumer.
12.30 GMT: CAD – GDP – measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy.
13.45 GMT: USD – Chicago PMI – determines the economic health of the manufacturing sector in Chicago region.
14.00 GMT: USD – Michigan Consumer Sentiment – rates the relative level of current and future economic conditions.
October 31, 2014 – Daily Market News
Today’s Hot Asset: EUR
U.S. stocks climbed as GDP data came out above expectations. Third quarter Gross Domestic Product increased 3.5%. Strong gains were seen the day before after the Fed decided to end quantitative easing and made hawkish remarks regarding the labour market. The S&P 500 closed 0.62% higher and the Dow Jones closed 1.3% higher. Asian markets rallied as the Bank of Japan made a surprising decision to extend monetary stimulus. The Nikkei as a result gained 4.83% and exporters were boosted. The Hang Seng added 1.25% due to reports that tests will be held this weekend for the China – Shanghai trading link. European markets are higher today in reaction to the Bank of Japan’s decision. Gains are also being seen after the European CPI increased by 0.4%, up from 0.3% last month. Currently, the CAC 40 is up 2.17% while Germany’s DAX is up 1.93% and London’s FTSE 100 is up 1.09%.
WTI Crude has decreased sharply despite positive U.S. GDP data. The drop is being caused by the U.S. dollar which is appreciating from decisions by the Bank of Japan and Federal Reserve. Further pressure was added to the price as OPEC boosted production to a 14 month high. Gold also declined strongly and is currently trading around $1,164/ounce, its lowest price since 2010. Hawkish comments from the Federal Reserve boosted sentiment and increased the outlook for the economy making Gold a less attractive asset.
Today’s Main Events:
10.00 GMT: EUR –CPI – measures the change in the price of goods and services from the perspective of the consumer.
12.30 GMT: CAD – GDP – measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy.
13.45 GMT: USD – Chicago PMI – determines the economic health of the manufacturing sector in Chicago region.
14.00 GMT: USD – Michigan Consumer Sentiment – rates the relative level of current and future economic conditions.
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