Asian markets declined across the region after China’s finance minister, Lou Jiwei, cut expectations that the government could add stimulus to the economy. He stated that the government will not make major policy changes following recent bad data. The Hang Seng dropped 1.44% and the Nikkei dropped 0.71%. European stocks started the week mixed following this sentiment. Markets were also moved by Tesco, which lost 9% due to reports that an accounting error may offset profit. During mid-trade, the FTSE 100 was down 0.74% while Germany’s DAX was off 0.13% and France’s CAC 40 was lower by 0.06%. U.S. markets opened in negative territory after reaching record figures last week. Traders appear to be hesitant due to fears that there is a slowdown in the Chinese economy. FOMC members, Dudley and Kocherlakota, will be speaking today and if any hints towards monetary policy are given we could see some movement. During early trade, the S&P 500 was 0.32% lower and the Dow Jones was 0.06% lower.
WTI Crude fell as traders speculated that China will release weak manufacturing data at 01.45am GMT. The speculation comes after comments made by the Chinese Finance Minister at the G20 meeting. He stated that economic growth faces downward pressure and this would lead to lower demand for the commodity. The price is now ranging near its support due to weak global demand. A refinery in Libya has remained closed after a rocket attack last week, if any increased tension occurs we could see the price climb. Gold has been trending downwards since the FOMC Statement last Wednesday. Weak physical demand together with a strong performance of stocks has pressure the metal even lower. Traders should wait for speeches from FOMC members today as they could cause higher volatility.
Today’s Main Events:
13.00 GMT: EUR – ECB President Draghi Speaks – Due to testify on monetary policy before the European Parliament’s Economic and Monetary Committee, in Brussels
14.00 GMT: USD – Existing Home Sales – measures the change in the annualized number of existing residential buildings that were sold during the previous month.
14.05 GMT: USD – FOMC Member Dudley Speaks – Due to speak about economic conditions that could warrant higher interest rates at the Bloomberg Link’s Markets Most Influential Summit, in New York
23.30 GMT: USD – FOMC Member Kocherlakota Speaks – Due to speak about objectives of monetary policy at the Economic Club of Marquette County, in Michigan
September 22, 2014 – Daily Market News
Today’s Hot Asset: USD
Asian markets declined across the region after China’s finance minister, Lou Jiwei, cut expectations that the government could add stimulus to the economy. He stated that the government will not make major policy changes following recent bad data. The Hang Seng dropped 1.44% and the Nikkei dropped 0.71%. European stocks started the week mixed following this sentiment. Markets were also moved by Tesco, which lost 9% due to reports that an accounting error may offset profit. During mid-trade, the FTSE 100 was down 0.74% while Germany’s DAX was off 0.13% and France’s CAC 40 was lower by 0.06%. U.S. markets opened in negative territory after reaching record figures last week. Traders appear to be hesitant due to fears that there is a slowdown in the Chinese economy. FOMC members, Dudley and Kocherlakota, will be speaking today and if any hints towards monetary policy are given we could see some movement. During early trade, the S&P 500 was 0.32% lower and the Dow Jones was 0.06% lower.
WTI Crude fell as traders speculated that China will release weak manufacturing data at 01.45am GMT. The speculation comes after comments made by the Chinese Finance Minister at the G20 meeting. He stated that economic growth faces downward pressure and this would lead to lower demand for the commodity. The price is now ranging near its support due to weak global demand. A refinery in Libya has remained closed after a rocket attack last week, if any increased tension occurs we could see the price climb. Gold has been trending downwards since the FOMC Statement last Wednesday. Weak physical demand together with a strong performance of stocks has pressure the metal even lower. Traders should wait for speeches from FOMC members today as they could cause higher volatility.
Today’s Main Events:
13.00 GMT: EUR – ECB President Draghi Speaks – Due to testify on monetary policy before the European Parliament’s Economic and Monetary Committee, in Brussels
14.00 GMT: USD – Existing Home Sales – measures the change in the annualized number of existing residential buildings that were sold during the previous month.
14.05 GMT: USD – FOMC Member Dudley Speaks – Due to speak about economic conditions that could warrant higher interest rates at the Bloomberg Link’s Markets Most Influential Summit, in New York
23.30 GMT: USD – FOMC Member Kocherlakota Speaks – Due to speak about objectives of monetary policy at the Economic Club of Marquette County, in Michigan
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