Friday, March 28, 2014


Market Comment

US indices declined on Thursday pressured by shares in the Banks, Insurance and Media sectors. The S&P 500 (1849.04) remains below its 20d moving average (1863.2 - flat slope), and above its 50d moving average (1833.9 - positive slope).

European markets are expected to open on a positive note.

Foreign Exchange

US Dollar was mixed against most of its major counterparts on Thursday. On the US economic data front, GDP grew at a 2.6% (2.7% expected) annualized rate in 4Q while personal consumption rose 3.3% (+2.7% expected). Initial jobless claims fell to 311K (323K expected and 321K prior) in the week ended March 22nd. Finally, pending home sales dropped 0.8% MoM (+0.2% expected) in February.

The Euro was under pressure against its major counterparts. In Europe, euro-zone M3 money supply was up 1.3% YoY in February, as expected, after a 1.2% advance in January. French consumer confidence index increased to 88 in March vs 85 the month before. Economists anticipated the index to be flat.


After the close of Wall Street, WTI Crude Future (MAY 14) was up $1.1 to $101.36. The contract was above its 20D MA (@ $100.38) and above its 50D MA (@ $98.05).

Gold was down $12.1 to $1292.4. The precious metal was below its 20D MA (@ $1339) and below its 50D MA (@ $1306).

Copper Future (MAY 14) on Comex was up 2.8c to 299.35c/lb. The contract was below its 20D MA (@ 307.74c) and below its 50D MA (@ 319.17c). In Europe, the London Metal Exchange reported its copper inventories decreased 1200 tons to 268550 tons.

European Markets

Austria: S&P has affirmed the country's "AA+" long-term foreign and local currency sovereign credit rating, outlook "Stable". The rating firm said: "The affirmation reflects Austria's stable governance and predictable economic policies supporting growth. The ratings benefit from the second highest GDP per capita in the EU (according to Eurostat) and Austria's competitive economy. The country's sustained current account surpluses and strong international investment position underpin its economic resilience. The ratings remain constrained by high and still-rising government debt and by contingent liabilities stemming predominantly from Austria's internationally oriented banking sector."

Today's Economic Events

GE 07:00: FEB Import Prices (MoM): 0.2%
UK 09:30: 4Q GDP (QoQ): 0.7%
FR 07:45: FEB Producer Price Index (MoM): NA
UK 09:30: 4Q Current Account (Bln): -14
EC 10:00: MAR Euro-zone: Industrial Confidence: -3.5
EC 10:00: MAR Business Climate Indicator: 0.38
EC 10:00: MAR Euro-Zone: Economic Confidence: 101.4
EC 10:00: MAR Euro-Zone: Consumer Confidence: NA
GE 13:00: FEB Consumer Price Index (MoM): 0.4%
GE 13:00: FEB CPI - EU Harmonised (MoM): 0.4%
US 12:30: FEB Personal Income: 0.3%
US 12:30: FEB Personal Spending: 0.3%
US 13:55: MAR U. of Michigan Confidence: 80.5

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