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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EVENTS & FINANCIAL NEWS 13-02-2014

Market Comment

US indices were mixed on Wednesday. Shares in the Automobiles & Components, Semiconductors & Semiconductor Equipment and Media sectors traded higher while shares in the Household & Personal Products, Food, Beverage & Tobacco and Energy sectors were under pressure. The S&P 500 (1819.26) remains above its 20d moving average (1801.2 - negative slope) and its 50d moving average (1809.8 - 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 February 7th fell 2% (+0.4% prior).

The Euro was under pressure against its major counterparts. Benoit Coeure, Member of the Executive Board of the ECB said the ECB is considering negative deposit rate "very seriously". In Europe, in eurozone, industrial production declined by a seasonally adjusted 0.7% in December, compared to expectations for a 0.3% drop. Industrial production in November was revised to a 1.6% gain, from a previously reported increase of 1.8%.

Commodities

After the close of Wall Street, WTI Crude Future (MAR 14) was about flat to $100.25. 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 7 February, crude oil inventories increased 3267k barrels compared to the previous week. 

Gold was about flat to $1291.3. The precious metal was above its 20D MA (@ $1259) and above its 50D MA (@ $1239). 

Copper Future (MAR 14) on Comex was up 4c to 325.5c/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 1775 tons to 302050 tons.

UK Market News

UK: The Royal Institution of Chartered Surveyors House Price Balance eased to +53 in January (vs +58 expected) from +56 in December.

Rolls-Royce Holdings posted FY13 profit before tax down 36% YoY to £1.8B, adding: "The order book increased 19%, to £71.6B, up 16% excluding Tognum. (...) Underlying revenue increased 27% to £15.5B, including £2.6B in revenue from Tognum. (...) Underlying profit before tax increased 23% to £1.8B, including a £180M increase from Tognum. (...) The order book of more than £71B provides good visibility of income streams for many years to come, and gives us the confidence to increase the dividend by 13% to 22p. (...) For the full year 2014, we expect underlying Group revenue and profit to be flat. This reflects a 15-20% decline in Defence revenue, the consequence of well-publicised cuts in defence spending among major customers, and completion of the delivery phase of two major export programmes. Additionally, Marine will generate lower revenue in 2013, driven by Offshore. We expect growth to resume in 2015."

European Markets

ECB: Monthly Bulletin, 10 a.m. CET

Commerzbank swung to a 4Q net income of E64M from a net loss of E726M in the previous year and to a FY13 net income of E78M from a net loss of E47M. The Bank proposed no dividend. It pointed out: "The loan loss provisions increased as expected to E1,747M (2012: E1,660M). (...) In the Core Bank an operating profit of E1.8B was attained in a challenging environment in 2013 (2012: E2.5B). The downturn was due not only to the weaker market environment, but above all to the increase in loan loss provisions at Mittelstandsbank. (...) The risk-weighted assets were further reduced by 8.4% to E191B (2012: E208B). The total assets declined year-on-year by 13.6% to E550B (2012: E636B), and thus for the first time since 2006 were again lower than E600B. (...) The Common Equity Tier 1 ratio taking into account the transitional regulations of Basel 3 was 11.6% as of the end of December (previous year: 10.2%). With the full application of Basel 3 the Common Equity Tier 1 ratio as of the end of December would have been 9.0%, following on from 7.6% at the end of 2012." On the outlook the Bank said: "Commerzbank will further increase the business volume in the Core Bank in 2014. The revenues will still probably be impacted as a consequence of the low interest-rate environment and the low level of investment activity on the part of companies, however. In 2014, the loan loss provisions should be lower than the overall figure for 2013. (...) We now intend to increase our Common Equity Tier 1 ratio to more than 10% by 2016 - namely with the full application of Basel 3."

Contact Us:

Direct:04-3841906
Web: www.cfb.ae
Email:info@cfb.ae

For more information please visit our website century financial brokers.

Here are some useful links that you can follow:

Here is a CFB blog that gives useful daily Gold Analysis on dailybasis.

You can also follow CFB on facebook (useful advice on posts regularly)

Here is another blog that provides regular news and information and is very useful for Forex Signals.