EVENTS & FINANCIAL NEWS 12-02-2014

Market Comment

US indices closed higher on Tuesday boosted by Food & Staples Retailing, Energy and Transportation sectors. Fed Chairman Janet Yellen said FOMC likely to continue QE taper in measured steps and that recovery in labour market is "far from complete". The S&P 500 (1819.75) jumped above its 20d moving average (1802.15 - negative slope) and its 50d moving average (1809.55 - flat slope).

European markets are expected to start on a positive note.

Foreign Exchange

US Dollar was mixed against most of its major counterparts on Tuesday. On the US economic data front, NFIB Small Business Optimism index rose to 94.1 (93.9 expected) in January from 93.9 the previous month. Wholesale inventories increased 0.3% MoM (+0.5% expected) in December after a 0.5% gain the prior month. Finally, Janet Yellen said FOMC likely to continue QE taper in measured steps and that recovery in labor market is "far from complete".

Commodities

After the close of Wall Street, WTI Crude Future (MAR 14) was about flat to $99.93. The contract was above its 20D MA (@ $95.67) and above its 50D MA (@ $96.35).

Gold was up $16.1 to $1290.9. The precious metal was above its 20D MA (@ $1257) and above its 50D MA (@ $1238).

Copper Future (MAR 14) on Comex was about flat to 322.95c/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 2575 tons to 303825 tons.

UK Market News

UK: The Savills/ Markit Total Commercial Development Activity Index rose to 33.7% in January, the second-highest level since data collection began in March 2003, from 27.8% in December. Key findings also included: "Public commercial projects rose at a solid rate that was nevertheless the weakest in three months. The growth rate for private commercial work was the second-fastest in the history of the series. (...) At +40.4% in January, the net balance for industrial/warehouse activity indicated a sharp rate of expansion that was the strongest in the series history. (...) The strongest rise was noted in the South East, where the latest net balance was the highest since data collection began."

European Markets

ECB: Publication of the Euro area securities issues statistics (10am CET); Keynote address by the President, Mario Draghi in concluding session of Conference for the 20th anniversary of the establishment of the European Monetary Institute "Progress through crisis?" organised by the ECB and the Banque Nationale de Belgique. (4:30pm CET)

Allianz announced the buying of an 8.33% stake in Bayern Munchen football club for E110M, saying: "FC Bayern Munchen AG intends to use the capital from the Allianz SE investment for the repayment of debts and for the constitution of a youth football center of excellence. The naming rights, including an option, for the FC Bayern München stadium, the Allianz Arena, have been secured long-term until 2041."

Porsche can achieve its target of selling over 200K vehicles in 2015, three years earlier than originally scheduled, according to the Co's CEO cited by Reuters.

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