Thursday, March 20, 2014

EVENTS & FINANCIAL NEWS 20-03-2014

Market Comment

US indices dropped on Wednesday pressured by shares in the Real Estate, Utilities and Household & Personal Products sectors. The Fed reduced the monthly pace of bond purchase by $10B to $55B as expected and said it will look at a wide range of data in determining when to raise its benchmark interest rate. The S&P 500 (1860.77) remains above its 20d moving average (1858.43 - positive slope) and its 50d moving average (1830.9 - flat slope).

European markets are expected to open 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 March 14th fell 1.2%. The Fed reduced the monthly pace of bond purchase by $10B to $55B as expected and said it will look at a wide range of data in determining when to raise its benchmark interest rate.

The British Pound was under pressure against its major counterparts. Chanceller of the Exchequer George Osborne said the UK economy should grow by 2.7% this year vs a previous forecast of +2.4%. Still in UK, unemployment rate was flat at 7.2% for the November-January period, as expected. Jobless claims were down by 34.6K in February vs -33.9K the month before. Economists anticipated them to be down by 25K.

Commodities

After the close of Wall Street, WTI Crude Future (APR 14) was up $0.6 to $100.31. The contract was above its 20D MA (@ $95.67) and above its 50D MA (@ $96.35). The US Department of Energy reported that, for the week ended 14 March, crude oil inventories increased 5850k barrels compared to the previous week. 

Gold was down $26.6 to $1329.2. The precious metal was below its 20D MA (@ $1344) and above its 50D MA (@ $1297). 

Copper Future (MAY 14) on Comex was up 2.7c to 297.85c/lb. The contract was below its 20D MA (@ 330.62c) and below its 50D MA (@ 326.76c). The 14d RSI below 30 (24.01) indicates Copper Future (MAY 14) contract was oversold. In Europe, the London Metal Exchange reported its copper inventories decreased 2025 tons to 269725 tons.

European Markets

ECB: Participation by the President at European Council in Brussels

Conference: New Energy Husum, Filing Variations Conference

Today's Economic Events

GE 07:00: FEB Producer Price Index (MoM): 0.1%
US 12:30: W10 Initial Jobless Claims (Thsd): 322
US 14:00: FEB Existing Home Sales (Mln): 4.6
US 14:00: MAR Philadelphia Fed.: 3.2
US 14:00: FEB Leading Indicators: 0.2%

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