The FOMC statement was released yesterday. The Fed increased the official target rate forecast and lowered their quantitative easing by a further $10billion stating that they expect to end the easing next month. However they also stated that the interest rate will remain near zero for a “considerable time” and downgraded the GDP growth forecast. In response to this, U.S. stocks climbed. The Dow Jones closed 0.15% higher at a record of 17,156.85. The S&P 500 closed 0.13% higher at 2,001.57 after climbing above 2,010 mid- session. Asian markets were mixed. The Nikkei gained 1.13% as the Dollar strengthened against the Yen, reaching a 6 year high, climbing to ¥108.81. The Hang Seng, however, dropped 0.85% as a new report showed that the $81 billion stimulus from the Central Bank is still awaiting approval. European markets are higher today as investors are focusing on the Scottish Referendum. Currently, the DAX is up 0.98% while France’s CAC 40 is up 0.63% and London’s FTSE 100 is up 0.40%.
WTI Crude declined yesterday after the EIA showed a surprising increase in inventories. Inventories reportedly rose 3.7 million barrels during the past week. However, the price then rebounded after supply in Libya and Nigeria was threatened. Gold dropped to a 9 month low following the FOMC economic projections and statement. The price rebounded slightly as investors focused on comments that rates will remain low for a considerable time. Today, traders should watch the Philadelphia Fed Manufacturing Index which is being released at 2PM (GMT). The previous 6 readings were above expectations and placed additional pressure on the yellow metal. You should also watch the Scottish Referendum as the results could spark appetite for the metal.
Today’s Main Events:
08.30 GMT: GBP – Retail Sales – measure the change in the total value of inflation-adjusted sales at the retail level
12.30 GMT: USD – Building Permits – measures the change in the number of new building permits issued by the government
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.
12.45 GMT: USD – Fed Chair Yellen Speaks – Due to deliver a speech titled “The Importance of Asset Building for Low and Middle Income Households” at the Corporation for Enterprise Development’s 2014 Asset Leaning Conference in Washington DC, via satellite
14.00 GMT: USD – Philadelphia Fed Manufacturing Index – rates the relative level of general business conditions in Philadelphia
September 18, 2014 – Daily Market News
Today’s Hot Assets: GBP, Gold, USD
The FOMC statement was released yesterday. The Fed increased the official target rate forecast and lowered their quantitative easing by a further $10billion stating that they expect to end the easing next month. However they also stated that the interest rate will remain near zero for a “considerable time” and downgraded the GDP growth forecast. In response to this, U.S. stocks climbed. The Dow Jones closed 0.15% higher at a record of 17,156.85. The S&P 500 closed 0.13% higher at 2,001.57 after climbing above 2,010 mid- session. Asian markets were mixed. The Nikkei gained 1.13% as the Dollar strengthened against the Yen, reaching a 6 year high, climbing to ¥108.81. The Hang Seng, however, dropped 0.85% as a new report showed that the $81 billion stimulus from the Central Bank is still awaiting approval. European markets are higher today as investors are focusing on the Scottish Referendum. Currently, the DAX is up 0.98% while France’s CAC 40 is up 0.63% and London’s FTSE 100 is up 0.40%.
WTI Crude declined yesterday after the EIA showed a surprising increase in inventories. Inventories reportedly rose 3.7 million barrels during the past week. However, the price then rebounded after supply in Libya and Nigeria was threatened. Gold dropped to a 9 month low following the FOMC economic projections and statement. The price rebounded slightly as investors focused on comments that rates will remain low for a considerable time. Today, traders should watch the Philadelphia Fed Manufacturing Index which is being released at 2PM (GMT). The previous 6 readings were above expectations and placed additional pressure on the yellow metal. You should also watch the Scottish Referendum as the results could spark appetite for the metal.
Today’s Main Events:
08.30 GMT: GBP – Retail Sales – measure the change in the total value of inflation-adjusted sales at the retail level
12.30 GMT: USD – Building Permits – measures the change in the number of new building permits issued by the government
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.
12.45 GMT: USD – Fed Chair Yellen Speaks – Due to deliver a speech titled “The Importance of Asset Building for Low and Middle Income Households” at the Corporation for Enterprise Development’s 2014 Asset Leaning Conference in Washington DC, via satellite
14.00 GMT: USD – Philadelphia Fed Manufacturing Index – rates the relative level of general business conditions in Philadelphia
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