Market Update July 29th, 2013 Equities It was a tough start to the U.S. session on Friday, but an otherwise smooth end as the major indices overcame large losses early to end the session little changed but in positive territory. Initial weakness was exacerbated after a headline crossed saying the IMF felt the interest rate volatility in the U.S. could have an adverse global effect and that economic risks remain tilted to the downside. Leading gains on the S&P 500, Starbucks rose 7.6% after reporting a quarterly profit that topped expectations. Leading losses on the S&P 500, Expedia fell 27% a day after it said second-quarter profit fell by a third. A favourable reading on consumer sentiment did little to bolster stocks. The Thomson Reuters / University of Michigan’s index of U.S. consumer sentiment rose to 85.1 this month from 84.1 in June. The latest level is the highest since July 2007. After a 150-point drop, the Dow added 3.22 points to 15,558.83, giving the blue-chip index a 0.1% weekly gain, its fifth straight. The Dow is up almost 19% this year. Forex The U.S. dollar fell for a third week against most major peers as U.S. economic data failed to convince investors the Federal Reserve will decide next week to reduce stimulus by slowing its bond-buying program. The U.S. currency declined 1% to $1.3279 per euro. The yen climbed against all of its 16 most-traded peers as investors sought safety amid a drop in Asian stocks after disappointing Japanese corporate earnings. The yen climbed 1.1% to 98.21 per dollar on Friday. The loonie dollar traded at almost a five-week high before the Fed meets this week amid speculation policy makers will maintain monetary stimulus in the nation’s biggest trade partner. It has advanced 0.9% last week to buy 97.30 U.S. cents.
Posted on: Mon, 29 Jul 2013 03:46:02 +0000
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