Thursday, February 20, 2014

EVENTS & FINANCIAL NEWS 20-02-2014

Market Comment

US indices declined on Wednesday pressured by shares in the Banks, Diversified Financials and Media sectors. Fed officials agreed further gradual reductions in their stimulus would be appropriate as long as the economy keeps improving, according to FOMC minutes of Jan 28-29. The S&P 500 (1828.75) remains above its 20d moving average (1799.2 - flat slope) and its 50d moving average (1813.1 - flat slope).

European markets are expected to start on a negative note.

Foreign Exchange

US Dollar was mixed against most of its major counterparts on Wednesday. On the US economic data front, MBA Mortgage applications for the week ended February 14th dropped 4.1% (-2.0% prior). PPI final demand rose 0.2% MoM (+0.1% expected) in January. Housing starts slumped 16.0% MoM (-4.9% expected) in January while building permits fell 5.4% MoM (-1.6% expected). Finally, Fed officials agreed further gradual reductions in their stimulus would be appropriate as long as the economy keeps improving.

The Euro was mixed against its major counterparts. In Europe, euro zone construction output was up by 0.9% in December after a 0.2% decline the month before (revised from -0.6%).

The British Pound was firm against its major counterparts. UK unemployment rate increased to 7.2% for the October-December period from 7.1% in the previous period. Economists expected it to be flat. Jobless claims were down by 27.6K in January vs -27.7K the month before. Economists anticipated them to be down by 20K.

Commodities

After the close of Wall Street, WTI Crude Future (MAR 14) was up $1 to $103.44. The contract was above its 20D MA (@ $95.67) and above its 50D MA (@ $96.35). The 14d RSI above 70 (73.51) indicates WTI Crude Future (MAR 14) was overbought.

Gold was down $10.2 to $1311.8. The precious metal was above its 20D MA (@ $1277) and above its 50D MA (@ $1247).

Copper Future (MAR 14) on Comex was about flat to 327.85c/lb. The contract was below its 20D MA (@ 330.62c) and above its 50D MA (@ 326.76c). In Europe, the London Metal Exchange reported its copper inventories decreased 2525 tons to 290625 tons.

European Markets

ECB: Publication of the Euro area financial vehicle corporations statistics (10am CET); Presentation and participation by Mr Constcio in panel discussion at the "12th Annual European Financial Services Conference" (11:30am CET)

Today's Economic Events

FR 07:45: JAN Consumer Price Index (MoM): -0.4%
FR 07:45: JAN CPI - EU Harmonised (MoM): -0.5%
GE 07:00: JAN Producer Price Index (MoM): 0.2%
EC 15:00: JAN Euro-Zone: Consumer Confidence: -11
US 13:30: W6 Initial Jobless Claims (Thsd): 334
US 13:30: JAN Consumer Price Index (MoM): 0.1%
US 13:30: JAN CPI - Ex Food & Energy (MoM): 0.1%
US 15:00: FEB Philadelphia Fed.: 8
US 15:00: JAN Leading Indicators: 0.4%
US 16:00: W6 Crude Oil Inventories (WoW chg): NA

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