Our Market Comments as of May, 22nd 2014 US equity markets closed the trading session last night in a high tone, after the Fed Minutes release suggested the FOMC will be accomodative as long as inflation remains below their 2% target and the housing market in the US doesnt recover. More specifically the Nasdaq Composite gained the most at 0.98%, given the risk appetite for high beta stocks and technology, whilst the small Caps saw their first positive day after long time. The Dow Jones Industrial gained 0.97%, with Industrials seeing strong inflows from the bond market, whereas the S&P500 saw gains of only 0.81% after a negative Q1 for the large retailers, which kept investors uncertaint about staples and retailer sectors. Overnight the better than expected Chinese Manufacturing PMI at 49.7 vs the 48.3 expetcted, gave a boost on commodities and Asian stocks. European markets expected to open in positive territory after such good data from Asia and ahead of EU PMI releases from France, Germany and UK. Keep alert ahead of Jobless claims and housing starts releases in the United states.
Posted on: Fri, 23 May 2014 07:33:42 +0000