Our Market Comments as of July, 15th 2014 US Equity Markets started the trading week in positive territory, reaching new high levels intraday on the Dow before dropping to 17055. After Citigroup impressed by beating analysts expectations with their earnings, and after a settlement of 7BN was announced with DOJ (much lower than the 12BN expected), investors increased their appetite for yield and bought cautiously into the US equity markets and financial sector. Volatility dropped again lower, whereas precious metals got sold off on good news. The best performer was the Industrial index with gains of 0.65%, followed by the S&P500 with gains of 0.48%, whereas the Nasdaq composite gained 0.56% on the day. In a day which lacked of significant macroeconomic data, the market shifted its attention to Central Bank rhetoric. ECBs Weidman said in an interview during the weekend that EU rates are too low for Germany, however Draghi last night reitarated that an appreciating Euro will be damaging for the recovery and they would do whatever it takes to promote growth in a stagfalting euro area economy. Overnight RBAs Stevens highlighted the need for a consolidation at low rates for Australia, until economic recovery has picked up, and last but not least Kuroda who highlighted the need for Japan to continue with easing until the 2% inflatin target is reached. European markets are expected to open flat.
Posted on: Tue, 15 Jul 2014 11:06:38 +0000
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