Good morning :) Markets Overnight US markets finished mixed overnight consolidating after yesterdays rally. The Dow fell nearly 0.2% thanks to the reduced earnings outlook from Procter & Gamble, and the S&P also closed lower. The Nasdaq however managed to finish slightly higher. European markets closed higher after Yellens reassurances, data released from China and the US congress passing the debt deal with no strings attached. Miners gained after the better than expected data from China showed mainland exports grew 10.6% in January from the year-ago period, compared to the expected result of a 2% growth. The Bank of England governor Mark Carney unveiled the next phase of the banks forward guidance, revising the initial guidance of the bank rate tied to the unemployment rate due to the sharp fall in jobless numbers. It also sharply revised up its growth forecasts for the UK economy in 2014, and revised down its inflation forecast. The comments, less dovish than expected, caused investors to expect the central bank to raise interest rates sooner than anticipated, and as such cable rose sharply on the comments. In Europe, euro zone production numbers did not meet expectations, causing the Euro to fall sharply, after Decembers numbers showed a fall of 0.7%, compared to the predicted 0.3% expected drop. Asian markets rose yesterday following on from Janet Yellens testimony and the much better than expected Chinese trade data released during the session. As mentioned above, exports grew, far exceeding expectations, however the distortion may be attributed to the Lunar New Year holidays. US lawmakers also agreed to raise the debt ceiling yesterday - without any strings attached, with the announcement coming in just after the US close. This also boosted sentiment for Asian markets. After being shut for a holiday Tuesday, the Nikkei resumed trade to finish near a two-week high, with the weaker currency supporting markets despite the weaker economic data showing core machinery orders fell 15.7% in December from the prior month, as exporters enjoyed the continued weakness in the Yen. Shanghai finished slightly higher but rested after closing at the highest levels in over a month Tuesday. Sydney enjoyed a 1% gain yesterday rising to a three week high after a fifth day of gains, and the Australian dollar continued to trade above 90 US cents. The Kospi also rose to the highest level since January 29, in a sixth straight session of gains, again ignoring data showing the unemployment rate in January rose for a second straight month. The stronger currency also put a cap on gains hurting exporters in the auto industry. Major news today includes AUD (unemployment) and USD (retail sales). Have a fantastic day! Elli.
Posted on: Wed, 12 Feb 2014 23:45:24 +0000