Courtesy of RIMsec Fixed Interest Securities Overnight markets… US stocks advanced in afternoon trade as soft economic data supported expectations the Federal Reserve will keep its stimulus measures intact for several months further, while gains in Pfizer and IBM helped the Dow finish up 0.72 per cent at the close. The S&P 500 ended up 0.56 per cent and the Nasdaq was also is up 0.31 per cent. Retail sales for September unexpectedly declined 0.1 per cent from August. Economists had forecast a 0.1 per cent rise. When excluding auto sales, retail sales did actually climb, adding 0.4 per cent as consumers picked up the pace of spending on electronics, eating out and other non-essentials. Business inventories for August increased 0.3 per cent, in line with expectations, while the October consumer confidence index fell more than expected to 71.2, a six-month low, from Septembers 79.7. At the same time, the producer price index for September unexpectedly dropped, falling 0.1 per cent versus expectations for a 0.2 per cent gain. The gauge of wholesale inflation was up 0.1 per cent when excluding food and energy. Pfizer rose 1.6 per cent after the pharmaceutical announced better than expected third-quarter earnings. IBM has approved an extra $US15 billion for share buybacks helping its shares gain 2 per cent. Price moves... The Australian dollar has extended its retreat, falling below the US95¢ mark to close at US94.80¢ at end of trading in the US. Brent oil futures fell, giving back some of the previous session’s sharp gains, on expectations that fresh disruptions over the weekend in exports from OPEC member Libya could be short-lived. Brent futures for December traded $US1.02 per barrel lower to $US108.59 by the afternoon in New York. Prices for US Treasuries were little changed as mixed data underscored uncertain prospects for the economy, with yields close to a three-month low as investors sought direction. Light trading volumes suggested traders were reluctant to make big bets as the Federal Reserve began their two-day policy meeting. In other news... In a big news day for the US, the Federal Open Markets Committee makes its rates decision tonight. Gross domestic product quarter on quarter, GDP price index, ADP employment change, MBA mortgage applications and personal consumption and personal consumption expenditures price index data will all also be released.
Posted on: Tue, 29 Oct 2013 23:43:36 +0000
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