Morning all, A lot of volatility expected for the remainder of the week with todays announcements and NFP tomorrow. Please be aware. No report tomorrow from me as I will be out, so have a great weekend and Ill see you all again Tuesday. Elli. Markets Overnight US markets closed relatively unchanged overnight after markets stabilized on the lessening fears over the Ukraine. Oil prices continued to fall as pressure remains on Moscow to withdraw their forces from Crimea. The S&P finished just below its record closing high set Tuesday, and the Dow fell 0.22%. The Nasdaq rose 0.14%. Released overnight the Feds Beige Book confirmed that harsh weather has affected business activity, restraining consumer spending and business activities, leading to slower growth or outright contraction in some areas. ADP figures released overnight have caused investors to speculate that the jobs report may also be softer than expected on Friday, as the results for the ADP missed expectations. US service sector activity has also fallen to its weakest level in four years in February, again attributed to the weather. European markets closed lower overnight with continued worries over the Ukraine and the upcoming ECB meeting today. There is talk around the market that the ECB may loosen monetary policy by ending so-called sterilization of its bond purchases that could release around 175 billion euros into the financial system. This will bring down interbank lending rates and most likely cause the euro to fall against the US dollar. Some economists are expecting a rate cut. The ECB will also be publishing staff forecasts forward to 2016 for the first time. Tension is also still un-abating with Russia, as European Union officials will meet in Brussels to discuss the situation. The Ukrainian PM will give a press briefing with European Parliamentary leaders and a Russian Foreign Minister is expected to meet with an EU High Representative for Foreign Affairs. This comes as Russia proposed a law that would allow Moscow to seize Western companies and individuals property and accounts in the event sanctions were imposed on Russia over the crisis, saying that the bill would offer the president and government opportunities to defend our sovereignty from threats. German and UK markets both closed down lower, affected by disappointing company earnings results, however Italy bucked the trend closing higher on a report from Markit indicating stronger than expected business activity in the country. The euro zone business activity PMI came in above expectations producing the strongest result in 32 months, with the boost mainly lead by Germany, posting a 33-month high in output growth. Asian markets ended mostly higher yesterday after the fears over the Russia-Ukraine issue were lessened after the Russian President stated there was no need yet to intervene. Shanghai however did not perform as well, closing down almost a percent, with declines accelerating an hour towards the close, despite the unveiling of a 2014 growth forecast of 7.5%. Worries over the first-ever domestic bond default weighed on sentiment after Solar equipment producer Chaori Solar said it would not be able to meet interest payments on bonds due Friday. Gold stocks fell as did mining stocks after tensions in the Ukraine eased. Tokyo rallied yesterday recovering Mondays losses and closing at a one-week high with the easing tensions, and the ASX gained almost a percent after better than expected fourth quarter GDP data moved the index close to a five and a half year high. Banking stocks also increased after the RBAs announcement to keep rates steady. The Kospi rallied up 1% for their biggest one-day gain in nearly two weeks with blue-chip stocks leading the rally. Major news today includes AUD, GBP, EUR, USD and CAD. A busy day for news and volatility is expected so please check Forex Factory for more details.
Posted on: Wed, 05 Mar 2014 23:57:56 +0000
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