U.S markets dropped on Friday and posted a third weekly loss. The week was dominated by currency swings as the Dollar rallied to multi year highs due to expectations of an interest rate hike, and the Euro declined on the back of QE. Energy shares were also hit as oil prices dropped almost 10%.Friday’s U.S data missed expectations with the PPI declining by 0.5% during the month of February, when expected to climb by 0.3% and the Michigan Consumer Sentiment coming out at 91.2 below expectations of 95.5. At session close the S&P 500 was 0.6%lower at 2,053 and the Dow Jones was 0.8% lower at 17,749.31. Attention will now turn to Wednesdays FOMC statement which will follow a two day meeting. Investors are eager for more clues regarding the timing of the interest rate hike. As this month’s NFP data was so strong traders began to speculate that the Fed will remove their ‘patient’ term from their pledge and Yellen previously hinted that the hike will initiated a few meetings after this step is made.
Asian markets were mixed today. The Nikkei lost 0.04% as the Yen weakened slightly against the Dollar, trading at 121.24 at the close of the session compared to 121.36 at the open. In addition, traders became hesitant ahead of the BoJ Press Conference which will be held at 06.30am (GMT). According to the Wall Street Journal, the bank is unlikely to make any major changes but as recent Japanese data has missed expectations and inflation continues to come out below target some analysts now predict the bank to inject more cash by autumn. Inpex Corp lost 4.31%, Sony Corp lost 3.75% and Chugai Pharmaceutical Co lost 3.66%. The Hang Seng added 0.51% due to hopes of additional stimulus. The Chinese Premier Li Keqiang stated on Sunday that the government has the room and tools to act and HSBC reported that “Beijing has sufficient policy ammunition to counter disinflationary risks and maintain gross domestic product growth above the bottom line…We believe this implies more easing measures will be deployed in the coming months.” Ping An Insurance Group Co of China added 3.23%, Belle International Holdings added 3.17% and China Mobile added 2.7%.
European markets are higher today. Markets are rallying on the weaker Yen and expectations that it will benefit exporters. The ECB’s QE plan has benefitted stock markets as money rushes into the market. The bank started buying €60 billion a month in bonds and assets last week as part of its effort to spur inflation and encourage economic growth. Currently, the FTSE 100 is 0.38% higher and the CAC 40 is 0.64% higher. In the FTSE, Tesco is up 3.01%, Associated British Foods is up 1.78%, Next is up 1.63% and J Sainsbury is up 1.47%. The DAX is currently up 1.55% and has surpassed 12,000 for the first time ever and is on its way to a 26th record close this year. Germany is has an export dependent economy and Siemens AG is up 2.27%, Allianz SE is up 1.98%, Commerzbank AG is up 1.94% and Daimler is up 1.9%. Draghi will be speaking later in the session and may affect sentiment.
March 16, 2015 – Indices News
U.S markets dropped on Friday and posted a third weekly loss. The week was dominated by currency swings as the Dollar rallied to multi year highs due to expectations of an interest rate hike, and the Euro declined on the back of QE. Energy shares were also hit as oil prices dropped almost 10%.Friday’s U.S data missed expectations with the PPI declining by 0.5% during the month of February, when expected to climb by 0.3% and the Michigan Consumer Sentiment coming out at 91.2 below expectations of 95.5. At session close the S&P 500 was 0.6%lower at 2,053 and the Dow Jones was 0.8% lower at 17,749.31. Attention will now turn to Wednesdays FOMC statement which will follow a two day meeting. Investors are eager for more clues regarding the timing of the interest rate hike. As this month’s NFP data was so strong traders began to speculate that the Fed will remove their ‘patient’ term from their pledge and Yellen previously hinted that the hike will initiated a few meetings after this step is made.
Asian markets were mixed today. The Nikkei lost 0.04% as the Yen weakened slightly against the Dollar, trading at 121.24 at the close of the session compared to 121.36 at the open. In addition, traders became hesitant ahead of the BoJ Press Conference which will be held at 06.30am (GMT). According to the Wall Street Journal, the bank is unlikely to make any major changes but as recent Japanese data has missed expectations and inflation continues to come out below target some analysts now predict the bank to inject more cash by autumn. Inpex Corp lost 4.31%, Sony Corp lost 3.75% and Chugai Pharmaceutical Co lost 3.66%. The Hang Seng added 0.51% due to hopes of additional stimulus. The Chinese Premier Li Keqiang stated on Sunday that the government has the room and tools to act and HSBC reported that “Beijing has sufficient policy ammunition to counter disinflationary risks and maintain gross domestic product growth above the bottom line…We believe this implies more easing measures will be deployed in the coming months.” Ping An Insurance Group Co of China added 3.23%, Belle International Holdings added 3.17% and China Mobile added 2.7%.
European markets are higher today. Markets are rallying on the weaker Yen and expectations that it will benefit exporters. The ECB’s QE plan has benefitted stock markets as money rushes into the market. The bank started buying €60 billion a month in bonds and assets last week as part of its effort to spur inflation and encourage economic growth. Currently, the FTSE 100 is 0.38% higher and the CAC 40 is 0.64% higher. In the FTSE, Tesco is up 3.01%, Associated British Foods is up 1.78%, Next is up 1.63% and J Sainsbury is up 1.47%. The DAX is currently up 1.55% and has surpassed 12,000 for the first time ever and is on its way to a 26th record close this year. Germany is has an export dependent economy and Siemens AG is up 2.27%, Allianz SE is up 1.98%, Commerzbank AG is up 1.94% and Daimler is up 1.9%. Draghi will be speaking later in the session and may affect sentiment.
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