While You Were Sleeping - 19 Aug 2014 by RIMsec Specialists is Regular Income Markets Overnight markets… U.S. stocks hung onto sharp gains through the afternoon, as tensions eased in Ukraine and European shares staged a recovery. The Dow Jones Industrial Average gained 161 points to 16824 in late afternoon trading. The S&P 500 index advanced 15 points to 1970. The Nasdaq Composite Index tacked on 38 points to 4503. European stocks extended their recent recovery as tensions in Ukraine showed signs of easing. The Stoxx Europe 600 index gained four points to 334, while Germanys DAX notched a 153 point gain advance to 9245. The FTSE 100 gained 52 points to 6741 and the CAC 40 joined the party with gaining 56 points to 4231. Bank of England Gov. Mark Carney said in an interview with the Sunday Times newspaper, published Sunday, that officials dont need to wait for wage growth to increase before raising interest rates in the U.K. The remarks raised some concerns that the BOE could raise official interest rates sooner than investors had expected. Central bankers from around the world will gather at Jackson Hole for an annual conference beginning Thursday for a 2-day meeting where Janet Yellen is expected to give a speech. There is a 50 percent chance that the European Central Bank will resort to asset purchases to boost inflation in the coming year, a Reuters poll of euro money market traders found. Economic growth in the euro zone was flat in the second quarter, with two of its biggest economies - Germany and Italy - contracting, while inflation fell to just 0.4 percent in July, well below the banks target. Both sets of data suggest a need for more central bank support. An index of home builder sentiment rose more than expected in August, underscoring the improved confidence in the U.S. housing market over the past few months. The National Association of Home Builders housing market index rose to its highest level in seven months, showing increasing optimism about home sales. Price moves... Investors sold safer government bonds in the U.S., Germany and the U.K. The 10-year U.S. Treasury note yield increased five basis points to yield 2.393%. The yield fell to 2.345% Friday, the lowest closing level since June 2013. The 30-year US bond yield rose 6.5 basis points on the day to 3.199% while the 5-year US note yield rose 3 basis points to 1.572%. The yield on the 10-year German government bond rose four basis points to 1.013% Monday. Gold prices fell Monday, as last weeks fears of a direct military confrontation between Russia and Ukraine have proven unfounded, leaving the precious metal vulnerable to concerns about higher interest rates in the U.S. Gold for December delivery, the most actively traded contract, settled down $6.90, or 0.5%, at $1,299.30 an ounce. Light, sweet crude for September delivery fell 94 cents, or 1%, to $96.41 a barrel. Brent fell $1.93, or 1.9%, to $101.60 a barrel, the lowest price since June 25, 2013. The US dollar index was up 0.18% at 81.57. The US dollar edged higher against the euro and yen on Monday, boosted by better-than-expected U.S. housing data. Against the yen, the US dollar edged up to 102.54 from 102.36 late Friday. The euro fell against the dollar to $1.3361 from $1.34. The sterling rose against the US dollar at $1.6727 The Australian dollar is trading at US93.26 cents in early morning trade, compared with US93.17 cents at Monday’s local close.
Posted on: Mon, 18 Aug 2014 22:47:07 +0000
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