Market Comment
US indices soared on Friday led by shares in the Pharmaceuticals, Biotechnology & Life Sciences, Commercial & Professional Services and Capital Goods sectors. The S&P 500 (1797.02) remains below its 20d moving average (1804.3 - negative slope) and its 50d moving average (1809.3 - flat slope).
European markets are expected to open on a flat note.
European markets are expected to open on a flat note.
Foreign Exchange
US Dollar was under pressure against most of its major counterparts on Friday. On the US economic data front, nonfarm payrolls rose by 113K (180K expected) in January after an upwardly revised 75K gain the previous month. The unemployment rate fell to 6.6% (6.7% expected) from 6.7%.
The Euro was mixed against its major counterparts. In Europe, German industrial production fell 0.6% in December after a 2.4% increase in November (revised from +1.9%). Economists expected the production to be up 0.3%. Germany trade balance was an excess of E14.2B in December compared to an excess of E19.1B in November. Exports retreated 0.9% while imports decreased 0.6%.
The Euro was mixed against its major counterparts. In Europe, German industrial production fell 0.6% in December after a 2.4% increase in November (revised from +1.9%). Economists expected the production to be up 0.3%. Germany trade balance was an excess of E14.2B in December compared to an excess of E19.1B in November. Exports retreated 0.9% while imports decreased 0.6%.
Commodities
After the close of Wall Street, WTI Crude Future (MAR 14) was up $2.1 to $99.95. The contract was above its 20D MA (@ $95.67) and above its 50D MA (@ $96.35).
Gold was up $10 to $1268.2. The precious metal was above its 20D MA (@ $1254) and above its 50D MA (@ $1236).
Copper Future (MAR 14) on Comex was up 1.6c to 324.45c/lb. The contract was below its 20D MA (@ 330.62c) and below its 50D MA (@ 326.76c). In Europe, the London Metal Exchange reported its copper inventories decreased 1225 tons to 308025 tons.
Gold was up $10 to $1268.2. The precious metal was above its 20D MA (@ $1254) and above its 50D MA (@ $1236).
Copper Future (MAR 14) on Comex was up 1.6c to 324.45c/lb. The contract was below its 20D MA (@ 330.62c) and below its 50D MA (@ 326.76c). In Europe, the London Metal Exchange reported its copper inventories decreased 1225 tons to 308025 tons.
UK Market News
The Lloyds Bank England and Wales Regional PMI: "At 59.1 in January, down from 60.0 in December, the headline index measuring overall business activity across the English regions remained above the 50.0 mark, signalling growth for the 15th consecutive month. The latest reading was the lowest for 7 months, (...) The South West (62.8) was the best performing of the English regions during January, followed by the South East (61.5) and West Midlands (60.9). Companies in the East Midlands recorded the weakest growth of business activity at the start of 2014 with a reading of 56.2. Meanwhile, the activity index for Wales remains broadly consistent at 58.2 in January, from 58.4 in December. (...) Private sector employment continued to grow across all nine English regions and Wales, (...) Cost inflation was sustained across England and Wales during January."
The Bank of Scotland PMI rose to 57.2 in January from 54.5 in December. The reported said: "An accelerated rise in new business in January boosted both output and job creation, with the former rising at one of the strongest rates on record. Input price inflation meanwhile dipped from December's 9-month high, but nevertheless remained strong and led businesses to raise output prices at a faster rate. (...) The pace of expansion signalled by the index was still slightly slower than that observed across the UK as a whole, however."
Ireland: The Ulster Bank Construction PMI posted 56.4 in January, down from 58.3 in December. The report pointed out: "The Irish construction sector maintained its recent run of improvement at the start of 2014 as further new business growth led to another strong rise in activity. Meanwhile, firms increased their employment at a faster pace. (...) Activity has now risen in each of the past five months. Where growth of activity was recorded, panellists reported that this was in line with further increases in new orders."
The Bank of Scotland PMI rose to 57.2 in January from 54.5 in December. The reported said: "An accelerated rise in new business in January boosted both output and job creation, with the former rising at one of the strongest rates on record. Input price inflation meanwhile dipped from December's 9-month high, but nevertheless remained strong and led businesses to raise output prices at a faster rate. (...) The pace of expansion signalled by the index was still slightly slower than that observed across the UK as a whole, however."
Ireland: The Ulster Bank Construction PMI posted 56.4 in January, down from 58.3 in December. The report pointed out: "The Irish construction sector maintained its recent run of improvement at the start of 2014 as further new business growth led to another strong rise in activity. Meanwhile, firms increased their employment at a faster pace. (...) Activity has now risen in each of the past five months. Where growth of activity was recorded, panellists reported that this was in line with further increases in new orders."
European Markets
ECB: Publication of the Harmonised Competitiveness Indicators (10am CET)
Deutsche Telekom has acquired the remaining 40% stake in its T-Mobile Czech Republic division for appx. E800M, reported Reuters citing a source with knowledge of the matter.
Continental has urged the ECB to curb the strength of the euro which may shrink the Co's sales by another E700M in 2014, according to the Co's CEO cited by the Euro am Sonntag newspaper.
Automobiles & Parts: Daimler (+1.7% to E63.54) reached a new 3-month relative high against the Dax.
Deutsche Telekom has acquired the remaining 40% stake in its T-Mobile Czech Republic division for appx. E800M, reported Reuters citing a source with knowledge of the matter.
Continental has urged the ECB to curb the strength of the euro which may shrink the Co's sales by another E700M in 2014, according to the Co's CEO cited by the Euro am Sonntag newspaper.
Automobiles & Parts: Daimler (+1.7% to E63.54) reached a new 3-month relative high against the Dax.
Contact Us:
Direct:04-3841906
Web: www.cfb.ae
Email:info@cfb.ae
For more information please visit our website century financial brokers.
Web: www.cfb.ae
Email:info@cfb.ae
For more information please visit our website century financial brokers.
Here are some useful links that you can follow:
You can also follow CFB on facebook (useful advice on posts regularly)
Here is another blog that provides regular news and information and is very useful for Forex Signals.
No comments:
Post a Comment