The Big Picture European main stock markets ended the trading session higher on Tuesday. Australian shares moved higher on rising expectations of an interest rate cut. Japanese stocks fell on Wednesday weighed by persistent strength in Yen. Walls Street seen minor changes as investors are waiting monetary policy meeting. Of the 302 companies in the S&P500 that posted quarterly results so far, 73 percent have exceeded analysts’ estimates for profit. Commerce Department will release its report on second- quarter GDP on July 31 at 8:30 a.m. in Washington. It is estimated that the U.S. gross domestic product probably grew at 1 percent annualized rate from April through June compared with 1.8% in the previous quarter. Federal Reserve policy makers will meet for the second day evaluate the economy and give indication as to when they will start trimming monthly bond purchases. Bernanke will not be briefing the press afterwards but will release a post meeting. In Europe ECB is expected to leave its benchmark interest rate unchanged at 0.5 percent tomorrow and BOE is expected to keep its bond-purchase program at 375 billion pounds. BOE is expected to provide forward guidance on August 7 after release of its quarterly Inflation Report In Europe the divergence in business cycles between U.S. and euro area may become more apparent and ECB might consider LTROs injections Economic confidence in the euro area improved and Europe is showing increasing signs that is emerging from a long recession of six quarters of contraction. Unemployment stayed at a record 12.2 % percent in June and is projected to move higher in coming months. Europe may encounter political concerns in Spain and Italy and on German constitutional decision on ESM, banking sector health. USD is set to close out a monthly loss against most of its major peers as investors await the Federal Reserve’s policy statement today. AUD depreciated against all 16 of its major peer and reached the weakest level in three years versus following its Central Bank’s statement about cutting interest rates. GPB weakened for a third session against the dollar before Britain’s policy makers release their quarterly Inflation Report next week.
Posted on: Wed, 31 Jul 2013 19:02:31 +0000
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