DAILY MARKET UPDATE NOV-20-2013 Ben Bernanke; Fed remains committed to maintaining highly accommodative polices for as long as they are needed Any belief that the USA Fed will taper soon appear to have been dashed by the Feds chairman Ben Bernanke late Wednesday evening; he stated that the US economy still weak, may be some time before Fed policy normalizes. Agrees with Yellen that a path to more normal monetary policy is to dependent on promoting robust recovery. Fed expects the labor market to continue to improve, inflation to move toward 2% goal over medium term. Asset purchases are not on a pre-set course, the pace of buying contingent on Fed’s economic outlook. Wednesday sees the publication of Germanys PPI, expected in at 0.1% up for the month and the BoE MPC publishes its voting over the current quantitative easing programme and rate setting, expected to have been unanimous. Inflation details for the USA are published, with the CPI expected in up 0.1% on the month, RPI up 0.1% with CPI flat. USA existing home sales are expected in at 5.21 million per annum, a slight fall expected due to seasonal activity slowing down moderately. The FOMC recent meeting minutes are published, prior to that FOMC member Bullard speaks. The governor of Canadas central bank Poloz speaks, Chinas HSBC flash manufacturing index is published, expected in at 50.9, whilst Japans monetary policy statement is published as the BOJ conducts a press conference. The DJIA closed down 0.06% on Tuesday, having rejected the 16,000 barrier for the second day. The volume or orders for; buy, sell and stop orders at this level must be massive, preventing much direction either way from gathering any fresh momentum. The SPX closed down 0.20% also rejecting the critical psyche level of 1,800. The NASDAQ closed down 0.44%. European indices also closed in the red on Tuesday; STOXX down 1.04%, the CAC down 1.12%, DAX down 0.35% and UK FTSE down 0.38%. Looking towards the equity index futures on Wednesday the DJIA is currently down 0.03%, SPX down 0.20% and NASDAQ down 0.25%. European indices futures are also down; STOXX down 1.04%, DAX down 0.38%, CAC down 1.14%, UK FTSE down 0.35%. NYMEX WTI oil closed up 0.33% at $93.34 per barrel, NYMEX nat gas down 0.79% at $3.56 per therm. COMEX gold closed up on the day by 0.09% at $1273.50 per ounce and silver down 0.13% at $20.33 per ounce. The euro rose by 0.4 percent to 135.57 yen late in New York time Tuesday after touching 135.71, the strongest level since November 2009. The shared currency gained 0.2 percent to $1.3538 after reaching $1.3547, the strongest level since Nov. 6th. The dollar rose 0.2 percent to 100.14 yen. The U.S. Dollar Index, which monitors the greenback versus its 10 major counterparts, was little changed at 1,015.00 after touching 1,013.11, the lowest since Nov. 6th. The euro rose to a four-year high versus yen after a European Central Bank board member said policy makers must be “very careful” about using negative interest rates in order to counter low inflation. The loonie, as Canada’s currency is known slid 0.4 percent to C$1.0469 per U.S. dollar at 5 p.m. Tuesday in Toronto. It gained to C$1.0415 on Monday, the strongest level since Nov. 7th. One Canadian dollar buys 95.52 U.S. cents. Canada’s dollar fell versus most major counterparts as futures of crude oil, the nation’s largest export, touched the lowest level in more than five months. U.S. 10-year yields rose four basis points, or 0.04 percentage point, to 2.71 percent as of 5:00 p.m. New York time. Yields fell earlier to 2.66 percent, the least since Nov. 8th. The price of the 2.75 percent note due in November 2023 fell 11/32, or $3.44 per $1,000 face amount, to 100 3/8. Treasuries fell, pushing the yield on the benchmark 10-year note up from a one-week low, before a speech by Federal Reserve Chairman Ben S. Bernanke that may help gauge the outlook for monetary stimulus.
Posted on: Thu, 21 Nov 2013 08:40:34 +0000
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