Market Comment
US indices rebounded on Thursday led by shares in the Telecommunication Services, Transportation and Materials sectors. The S&P 500 (1839.78) remains above its 20d moving average (1799 - flat slope) and its 50d moving average (1813.8 - 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 firm against most of its major counterparts on Thursday. On the US economic data front, initial jobless claims fell to 336K (335K expected and 339K prior) in the week ended February 15th. CPI rose 0.1% MoM in January while leading indicators index increased 0.3% MoM as expected. Finally, the Philly Fed index dropped to -6.3 (8.0 expected) in February from 9.4 the previous month.
The Euro was under pressure against its major counterparts. In Europe, euro-zone PMI composite was down to 52.7 in February vs 52.9 in January and 53.1 expected. Euro-zone consumer confidence index was -12.7 in February vs -11.7 the month before and -11 anticipated by consensus.
The Euro was under pressure against its major counterparts. In Europe, euro-zone PMI composite was down to 52.7 in February vs 52.9 in January and 53.1 expected. Euro-zone consumer confidence index was -12.7 in February vs -11.7 the month before and -11 anticipated by consensus.
Commodities
After the close of Wall Street, WTI Crude Future (APR 14) was about flat to $102.82. The contract was above its 20D MA (@ $95.67) and above its 50D MA (@ $96.35). The 14d RSI above 70 (73.39) indicates WTI Crude Future (APR 14) was overbought. The US Department of Energy reported that, for the week ended 14 February, crude oil inventories increased 973k barrels compared to the previous week.
Gold was up $11.8 to $1323.4. The precious metal was above its 20D MA (@ $1280) and above its 50D MA (@ $1248).
Copper Future (MAY 14) on Comex was about flat to 326.35c/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 1025 tons to 289600 tons.
Gold was up $11.8 to $1323.4. The precious metal was above its 20D MA (@ $1280) and above its 50D MA (@ $1248).
Copper Future (MAY 14) on Comex was about flat to 326.35c/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 1025 tons to 289600 tons.
UK Market News
UK: The Knight Frank/Markit House Price Sentiment Index hit a record high of 60.7 in February, up from 58.7 in January. Key findings included: "Households perceived that the value of their home rose in February, (...) This is the 11th consecutive month that households reported a rise in the value of their property. (...) Households in every region expect the value of their home to rise over the next 12 months, with expectations rising to a record high in six of the 11 regions, led by London (81.8)."
Ireland: Fitch Ratings has affirmed the country's ratings at "BBB+", outlooks "Stable". The rating firm pointed out: "Ireland successfully completed its three-year adjustment programme in December 2013. All quarterly fiscal targets of the Troika (EU, ECB, IMF) programme have been met, (...) has returned to market financing and has built up cash buffers equivalent of 13% of GDP by end-January 2014, (...) Fitch forecasts a budget deficit of 4.8% of GDP in 2014, implying a balanced primary position, compared with a primary deficit of more than 9% of GDP in 2009 excluding bank recapitalisation. (...) The acceleration of economic growth and larger than expected fall in unemployment in 2H13 are signs of a broad-based recovery. GDP growth could reach 1.6% in 2014 and 2.2% in 2015 (...) Fitch expects the current account surplus to remain around 4% of GDP in 2014-15, similar to 2013."
Ireland: Fitch Ratings has affirmed the country's ratings at "BBB+", outlooks "Stable". The rating firm pointed out: "Ireland successfully completed its three-year adjustment programme in December 2013. All quarterly fiscal targets of the Troika (EU, ECB, IMF) programme have been met, (...) has returned to market financing and has built up cash buffers equivalent of 13% of GDP by end-January 2014, (...) Fitch forecasts a budget deficit of 4.8% of GDP in 2014, implying a balanced primary position, compared with a primary deficit of more than 9% of GDP in 2009 excluding bank recapitalisation. (...) The acceleration of economic growth and larger than expected fall in unemployment in 2H13 are signs of a broad-based recovery. GDP growth could reach 1.6% in 2014 and 2.2% in 2015 (...) Fitch expects the current account surplus to remain around 4% of GDP in 2014-15, similar to 2013."
European Markets
SGL Carbon said that it expects a FY13 net loss of E400M (vs FY12 net income of E7M) and that it will not propose a dividend for the year, citing weak operational result and impairment charges in the Business Area Carbon Fibers & Composites (CFC) and in the deferred tax assets. The Co added: "The negative trends observed in the final quarter 2013 have continued into the first weeks of the new fiscal year 2014, particularly in the main business with graphite electrodes. If this development does not improve significantly in the course of the year, it will be difficult to achieve the operating earnings level of 2013, as the expected improvements in most other Business Units will not suffice to compensate for the decline in the graphite electrode business."
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