U.S. stocks dip as market recalibrates Fed expectations; Dow slips 0.47%

U.S. stocks dipped on Thursday as investors jumped to the sidelines to ponder when the Federal Reserve will begin unwinding its USD85 billion monthly bond-buying program, which boosts equity prices by driving down borrowing costs.

At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.47%, the S&P 500 index fell 0.38%, while the Nasdaq Composite index fell 0.28%.

On Wednesday, the Federal left its key benchmark lending target, the fed funds rate, unchanged at 0.25% and kept its USD85 billion monthly asset-purchasing program in place, which came as little surprise on Wall Street.

Still, the Fed's language came across as less dovish than markets were anticipating by omitting threats to the labor market mentioned in previous statements, which pressured stocks lower.

Solid data hitting the wire on Thursday solidified expectations that the Fed will begin tapering its stimulus programs in early 2014 as opposed to after March as once thought, and thus take away the monetary crutch that has pushed up stock prices for over a year.

Data released earlier revealed that the Chicago manufacturing purchasing managers’ index jumped to 65.9 in October from 55.7 in September. 

Analysts had expected the index to decline to 55.0.

The new orders component of the index jumped to a nine-year high of 74.3 from 58.9 in September.

Elsewhere, the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 25 declined by 10,000 to a seasonally adjusted 340,000, in line with market expectations.

Leading Dow Jones Industrial Average performers included Exxon Mobil, up 0.91%, 3M, up 0.90%, and Boeing, up 0.71%.

The Dow Jones Industrial Average's worst performers included Visa, down 2.92%, JPMorgan Chase, down 1.99%, and American Express, down 1.52%.

European indices, meanwhile, finished largely higher

After the close of European trade, the EURO STOXX 50 rose 0.80%, France's CAC 40 rose 0.60%, while Germany's DAX 30 rose 0.26%. Meanwhile, in the U.K. the FTSE 100 finished down 0.68%

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Forex - Dollar gains on surging Chicago manufacturing gauge

The dollar firmed against most major currencies on Thursday data revealed that manufacturing activity in the Chicago region expanded at its fastest rate in 30 years in October.

In U.S. trading on Thursday, EUR/USD was down 1.14% at 1.3579.

Data released earlier revealed that the Chicago manufacturing purchasing managers’ index jumped to 65.9 in October from 55.7 in September. 

Analysts had expected the index to decline to 55.0.

The new orders component of the index jumped to a nine-year high of 74.3 from 58.9 in September.

The news boosted the dollar by fanning sentiments that the U.S. economy will pick up the pace of its recovery and eventually prompt the Federal Reserve to wind down its USD85 billion monthly asset-purchasing program, which keeps the greenback weak to spur recovery.

Elsewhere, the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 25 declined by 10,000 to a seasonally adjusted 340,000, in line with market expectations.

The single currency weakened after data revealed that the euro zone's consumer price index fell to a four-year low in October, fueling concerns that the European Central Bank may trim interest rates.

Eurostat said consumer price inflation rose 0.7% in October, the slowest pace since November 2009, after rising 1.1% in September.

A separate report showed that the euro zone unemployment rate was at a record high 12.2% in September.

The greenback was up against the pound, with GBP/USD down 0.03% at 1.6036.

In the U.K., industry data showed that U.K. house prices rose 1% this month, more than the expected 0.7% increase after a 0.9% increase in September, which gave the pound support against the dollar.

The dollar was down against the yen, with USD/JPY down 0.20% at 98.33, and up against the Swiss franc, with USD/CHF up 0.86% at 0.9070.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.48% at 1.0429, AUD/USD down 0.28% at 0.9458 and NZD/USD trading down 0.06% at 0.8263.
Canada’s dollar strengthened after official data showed that the Canadian economy grew 0.3% in August, above expectations for growth of 0.2%.

The country's economy expanded 2% on a yearly basis, beating forecasts for an increase of 1.7%.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.71% at 80.34.

On Friday, the U.S. is to round up the week with a report from the Institute of Supply Management on manufacturing activity.

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Forex - GBP/USD dips on U.S. factory data, U.K. home sales support

The pound softened against the dollar on Thursday after a regional manufacturing barometer in the U.S. blew past expectations, though better-than-expected U.K. home sales figures cushioned the pound's losses.

In U.S. trading on Thursday, GBP/USD was trading at 1.6032, down 0.05%, up from a session low of 1.6006 and off from a high of 1.6068.

Cable was likely to find support at 1.5999, Wednesday's low, and resistance at 1.6208, Monday's high.

Data released earlier revealed that the Chicago manufacturing purchasing managers’ index jumped to 65.9 in October from 55.7 in September. 

Analysts had expected the index to decline to 55.0.

The new orders component of the index jumped to a nine-year high of 74.3 from 58.9 in September.

The news boosted the dollar by fanning sentiments that the U.S. economy will pick up the pace of its recovery and eventually prompt the Federal Reserve to wind down its USD85 billion monthly asset-purchasing program, which keeps the greenback weak to spur recovery.

Elsewhere, the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending Oct. 25 declined by 10,000 to a seasonally adjusted 340,000, in line with market expectations.

In the U.K., industry data showed that U.K. house prices rose 1% this month, more than the expected 0.7% increase after a 0.9% increase in September, which gave the pound support.

The pound, meanwhile, was up against the euro and down against the yen, with EUR/GBP down 1.11% at 0.8469 and GBP/JPY down 0.22% at 157.68.

On Friday, the U.K. is to publish data on manufacturing activity, a leading economic indicator.

The U.S. is to round up the week with a report from the Institute of Supply Management on manufacturing activity.

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Forex - Euro lower vs. firmer dollar after Fed

The euro was lower against the firmer dollar on Thursday after the Federal Reserve was less dovish than expected on the economic outlook, fuelling speculation that it could start scaling back stimulus sooner than expected.

EUR/USD hit 1.3689 during European morning trade, the lowest since October 22; the pair subsequently consolidated at 1.3711, shedding 0.18%.

The pair is likely to find support at 1.3661, the low of October 22 and resistance at 1.3812, the high of October 29.

The dollar recovered after the Fed left its USD85 billion-a-month asset purchase program in place following its monthly meeting on Wednesday. The bank gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.

"The housing sector has slowed somewhat in recent months," the Fed statement said. However, Fed officials stuck to the view that the economy is expanding "at a moderate pace" and said downside risks were diminishing.

Investors will now be looking ahead to the U.S. nonfarm payrolls report for October, due for release next Friday, to help assess the timing for a possible reduction in Fed stimulus.

The euro was lower against the yen, with EUR/JPY down 0.45% to 134.70. 

The Bank of Japan made no changes to its stimulus program on Thursday and reiterated that inflation will be close to reaching the bank’s 2% target by April 2015.

Elsewhere, the single currency was also weaker against the pound, with EUR/GBP sliding 0.18% to 0.8548.

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European stocks decline after downbeat German data; Dax down 0.20%

European stocks were lower on Thursday, after the release of downbeat German economic reports and as the Federal Reserve gave no clear indication on when it plans to scale back its stimulus program. 

During European morning trade, the EURO STOXX 50 edged down 0.15%, France’s CAC 40 fell 0.21%, while Germany’s DAX 30 slipped 0.20%. 

Data showed that the Gfk German consumer climate index declined to 7.0 in October, from a reading of 7.1 the previous month, confounding expectations for a rise to 7.2. 

A separate report showed that retail sales in Germany fell 0.4% in September, disappointing expectations for a 0.4% rise, after a downwardly revised 0.2% slip in August. 

In the U.S., the Fed left its USD85 billion-a-month asset purchase program in place and gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.

"The housing sector has slowed somewhat in recent months," the Fed statement said. However, Fed officials stuck to the view that the economy is expanding "at a moderate pace" and said downside risks were diminishing. 

Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale gained 1.93% and 0.58%, while Germany's Deutsche Bank climbed 0.41%. 

Earlier in the day, BNP Paribas reported an unexpected increase in third-quarter net income. 

Among peripheral lenders, Spanish banks BBVA and Banco Santander rose 0.17% and 0.46%, while Italy's Intesa Sanpaolo and Unicredit gained 0.86% and 1.06% respectively. 

Elsewhere, Air France-KLM declined 0.84% after saying earnings will be at the bottom of its 2014 projected range. 

In London, commodity-heavy FTSE 100 shed 0.39%,weighed by sharp losses in Shell, down 4.21%, after the oil company said third-quarter earnings dropped due to lower refining gains and disruptions in Nigerian output. 

Meanwhile, mining stocks were mixed. Rio Tinto added 0.17% and Glencore Xstrata gained 0.44%, while BHP Billiton slipped 0.28% and Fresnillo plunged 3.02%. 

In the financial sector, stocks were broadly higher as the Royal Bank of Scotland edged up 0.16% and HSBC Holdings climbed 0.48%, while Lloyds Banking and Barclays advanced 0.50% and 1.01% respectively. 

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.23% fall, S&P 500 futures signaled a 0.32% decline, while the Nasdaq 100 futures indicated a 0.48% drop. 

Later in the day, the U.S. was to release data on initial jobless claims and a report on manufacturing activity in the Chicago region.

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Forex Trading Signal for 31st October 2013

                                                                                


Japan (Tokyo)                               United Kingdon (London)                        USA (New York)

For more easy access,,,,,,Download our mobile application on your mobile :   Click Fxsignals 

EUR/USD

 Down Trend :

 (1) SELL

E/P: 1.37292

T/P: 1.37000

S/L: 1.38000

 

GBP/USD

Down Trend:

(1) SELL

E/P: 1.60299

T/P: 1.60000

S/L: 1.61000

NOTE: The above posted Signals are delayed 2 - 4 hours after it has been  generated.
Daily forex signals are sent ontime to only our subcribers.

To subcribe: click here

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Asian stocks mixed after Fed, regional data; Nikkei up 0.09%

Asian stocks were mixed during Thursday’s session amid a spate of regional data points and a lackluster response by U.S. stocks to commentary out of the Federal Reserve Wednesday. 

In Asian trading Thursday, Japan’s Nikkei 225 rose 0.09% after the Japanese Ministry of Health, Labour and Welfare said that Japan’s average cash earnings rose 0.1% in the third quarter following 0.9% drop in the prior quarter. The second-quarter reading was revised down from a drop 0.6%. Analysts expected a third-quarter drop of 0.5%. 

Hong Kong’s Hang Seng fell 0.40% while the Shanghai Composite lost 0.68% despite the People’s Bank of China buying USD2.6 billion worth of 14-day reverse-repo contracts to add liquidity into the Chinese financial system. 

That was not enough to keep investors from evaluating Chinese banks on the basis of their rising amount of bad loans. 

Australia’s S&P/ASX was steady after the Australian Bureau of Statistics said that Australian building approvals rose 14.4% last week after falling 1.6% in the previous week. Analysts expected the number to rise 2.7% last week. The prior week’s reading was revised up from a drop of 4.7%. 

In a separate report, the Reserve Bank of Australia said Australian private sector credit rose 0.3% in September, the same increase seen in August. Analysts expected a September increase of 0.4%. 

The Statistics Bureau also Australia’s import producer prices jumped 6.1% last month after falling 0.3% in August. Analysts expected a September rise 0.4%. 

New Zealand’s NZSE 50 jumped 0.86% after the Reserve Bank of New Zealand left rates unchanged at a record low of 2.5%. 

"Sustained strength in the exchange rate that leads to lower inflationary pressure would provide the bank with greater flexibility as to the timing and magnitude of future increases in the OCR," said RBNZ Governor Graeme Wheeler in a statement released earlier in the session. 

South Korea’s Kospi lost 0.73%. Singapore’s Straits Times Index fell 0.12% after the Singapore Ministry of Manpower said that Singaporean unemployment fell to 1.8% in the third quarter from 2.8% in the second quarter. Analysts expected the third-quarter reading to be unchanged at 2.1%. 

S&P 500 futures fell 0.39%.

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Forex Trading Signal for 30,th October 2013

                                                                                


Japan (Tokyo)                               United Kingdon (London)                        USA (New York)

For more easy access,,,,,,Download our mobile application on your mobile :   Click Fxsignals 

EUR/USD

 Down Trend :

 (1) SELL

E/P: 1.37608

T/P: 1.37308

S/L: 1.38100

 

GBP/USD

Down Trend:

(1) SELL

E/P: 1.60675

T/P: 1.60375

S/L: 1.61100

NOTE: The above posted Signals are delayed 2 - 4 hours after it has been  generated.
Daily forex signals are sent ontime to only our subcribers.

To subcribe: click here

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Forex Trading Signal for 29th October 2013

                                                                                


Japan (Tokyo)                               United Kingdon (London)                        USA (New York)

For more easy access,,,,,,Download our mobile application on your mobile :   Click Fxsignals 

EUR/USD

 Down Trend :

 (1) SELL

E/P: 1.37873

T/P: 1.37500

S/L: 1.38200

 

GBP/USD

SELL Trend:

(1) SELL

E/P: 1.61515

T/P: 1.61215

S/L: 1.62000

NOTE: The above posted Signals are delayed 2 - 4 hours after it has been  generated.
Daily forex signals are sent ontime to only our subcribers.

To subcribe: click here

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Bond yields fall to six-month low as Italy sells 10-year debt

Italy saw borrowing costs fall to the lowest level since April at an auction of ten-year government bonds on Wednesday, amid easing concerns over the country’s economic outlook. 

Italy’s Treasury sold EUR3 billion worth of ten-year debt at an average yield of 4.11%, down from 4.50% at a similar auction last month.

Rome also sold EUR3 billion of five-year government bonds at an average yield of 2.89%, also the lowest since April and down from 3.38% at a similar auction last month.

In total the country sold EUR6 billion of government debt, in line with expectations.

The yield on Italian 10-year bonds stood at 4.148% following the auction.

Meanwhile, the euro held on to gains against the U.S. dollar, with EUR/USD adding 0.12% to trade at 1.3761.

European stock markets remained higher. Italy FTSE MIB Index rose 0.85%, the EURO STOXX 50 advanced 0.5%, France’s CAC 40 added 0.55%, Germany's DAX tacked on 0.4%, while London’s FTSE 100 inched up 0.45%. 

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Dollar steady before Fed meeting

The dollar was trading in narrow ranges against the other main currencies on Wednesday as investors awaited the outcome of the Federal Reserve’s latest policy meeting later in the trading day.

During European morning trade, the euro inched higher against the dollar, with EUR/USD edging up 0.08% to 1.3757, holding back from last Friday’s 23 month highs of 1.3831.

The Fed was not expected to announce any change to its USD85 billion-a-month asset purchase program on Wednesday.

Many investors instead expect the Fed to maintain its stimulus program well into the first quarter of next year, in order to safeguard the fragile U.S. economic recovery in the wake of this month’s 16-day government shutdown.

In the euro zone, data released on Wednesday showed that Spain’s economy emerged from a recession in the third quarter, for the first time since 2011. Spain’s economy expanded 0.1% in the three months to September, following a 0.1% contraction in the previous quarter.

A separate report showed that the annual rate of consumer inflation in Spain fell by 0.1% in the third quarter.

The dollar was little changed close to a one-week high against the yen, with USD/JPY easing up 0.04% to 98.23. 

Elsewhere, the dollar was slightly lower against the pound and the Swiss franc, with GBP/USD up 0.12% to 1.6065 and USD/CHF slipping 0.11% to 0.8980.

The greenback was lower against its Australian and New Zealand counterparts, with AUD/USD rising 0.33% to 0.9511 and NZD/USD climbing 0.32% to 0.8280. 

The greenback was also lower against the Canadian dollar, with USD/CAD edging down 0.16% to 1.0452.

The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.13% to 79.50.

The U.S. was to release data on private sector payrolls for October later Wednesday, ahead of the U.S. nonfarm report, due for release on November 8, as well as a report on consumer inflation.

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U.S. stocks end mixed as market awaits Fed decision; Dow dips 0.01%

U.S. stocks finished Monday mixed as investors avoided equities ahead of the Federal Reserve's Wednesday announcement on monetary policy, while spotty quarterly earnings and economic indicators also kept market participants on the sidelines.

At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.01%, the S&P 500 index rose 0.13%, while the Nasdaq Composite index fell 0.08%.

The Federal Reserve will announce its latest decision on monetary policy and interest rates on Wednesday, and while many investors are expecting the U.S. central bank to leave its USD85 billion monthly asset-purchasing program unchanged, most remained out of equities markets to await the announcement and accompanying language.

Monthly asset purchases aim to drive recovery by pushing down interest rates, boosting stock prices in the process.

Data released earlier failed to act as a clearly visible market weather vane.

The Federal Reserve reported earlier that U.S. industrial production rose by a 0.6% in September, above expectations for a 0.4% rise and the fastest increase in seven months. 

Elsewhere, industry data revealed that U.S. pending home sales fell 5.6% last month, down for the fourth consecutive month and well below market calls for a gain of 0.1%.

Meanwhile on the earnings front, Merck reported profits that beat market expectations, however, revenue missed market consensus, though JCPenney stocks brought up retailers in general after the company issued a bullish sales forecast.

Leading Dow Jones Industrial Average performers included Procter & Gamble, up 1.67%, Coca-Cola, up 1.50%, and Wal-Mart Stores, up 1.48%.

The Dow Jones Industrial Average's worst performers included Merck, down 2.53%, United Technologies, down 1.40%, and UnitedHealth, down 1.04%.

European indices, meanwhile, finished largely lower.

After the close of European trade, the EURO STOXX 50 fell 0.35%, France's CAC 40 fell 0.48%, while Germany's DAX 30 fell 0.08%. Meanwhile, in the U.K. the FTSE 100 finished up 0.07%.

On Tuesday, the U.S. is to produce data on retail sales as well as its producer price index and a report on consumer confidence.

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Forex - Dollar firms on U.S. industrial output data, eyes Fed meeting

The dollar rose against most major currencies on Monday after industrial production data beat expectations though gains were limited as investors remained camped on the sidelines to await the Federal Reserve's decision on monetary policy on Wednesday.

In U.S. trading on Monday, EUR/USD was up 0.01% at 1.3807.

The Federal Reserve reported on Monday that U.S. industrial production rose by a 0.6% last month, above expectations for a 0.4% rise and the fastest increase in seven months. 

The news gave the dollar some support, though investors remained cautious ahead of the Fed's upcoming two-day policy meeting that opens on Tuesday.

A string of disappointing economic reports has cemented expectations that the central bank will maintain the current pace of its USD85 billion in monthly asset purchases into early next year.

Asset purchases aim to spur recovery by driving down long-term borrowing costs, weakening the dollar in the process.

Still, the upbeat industrial output number gave investors some hope that sooner or later, the Fed will begin to taper the pace of its stimulus program, which would give the dollar support afterwards. 

Elsewhere, industry data revealed that U.S. pending home sales fell 5.6% last month, down for the fourth consecutive month and well below market calls for a gain of 0.1%, which capped the dollar's advance somewhat.

The greenback was up against the pound, with GBP/USD down 0.03% at 1.6162.

In the U.K., Bank of England policymaker David Miles said Monday that raising interest rates before there was a “meaningful” reduction in the unemployment rate would be "pretty catastrophic," which softened the pound.

Elsewhere, the pair shrugged off a Confederation of British Industry report that found just 2% of retailers reported an increase in sales in October, down from 34% in September. 

The dollar was up against the yen, with USD/JPY up 0.24% at 97.64, and up against the Swiss franc, with USD/CHF up 0.18% at 0.8942.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.12% at 1.0439, AUD/USD down 0.02% at 0.9582 and NZD/USD trading up 0.31% at 0.8304.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.04% at 79.29.
On Tuesday, the U.S. is to produce data on retail sales as well as its producer price index and a report on consumer confidence.

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Forex - GBP/USD dips as market applauds U.S. industrial output data

The pound edged lower against the dollar on Monday after official data revealed activity in U.S. factories, mines and utilities was stronger in September than many were guessing.

In U.S. trading on Monday, GBP/USD was trading at 1.6158, down 0.06%, up from a session low of 1.6125 and off from a high of 1.6208.

Cable was likely to find support at 1.6116, Tuesday's low, and resistance at 1.6247, Friday's high.

The Federal Reserve reported on Monday that U.S. industrial production rose by a 0.6% last month, above expectations for a 0.4% rise and the fastest increase in seven months. 

The news gave the dollar some support, though investors remained cautious ahead of the Fed's upcoming policy meeting later in the week.

A string of disappointing economic reports has cemented expectations that the central bank will maintain the current pace of its USD85 billion in monthly asset purchases into early next year.

Asset purchases aim to spur recovery by driving down long-term borrowing costs, weakening the dollar in the process.

Still, the upbeat industrial output number gave investors some hope that sooner or later, the Fed will begin to taper the pace of its stimulus program, which would give the dollar support afterwards. 

Elsewhere, industry data revealed that U.S. pending home sales fell 5.6% last month, down for the fourth consecutive month and well below market calls for a gain of 0.1%, which capped the dollar's advance somewhat.

Meanwhile in the U.K., Bank of England policymaker David Miles said Monday that raising interest rates before there was a “meaningful” reduction in the unemployment rate would be "pretty catastrophic," which softened the pound.

Elsewhere, the pair shrugged off a Confederation of British Industry report that found just 2% of retailers reported an increase in sales in October, down from 34% in September. 

The pound, meanwhile, was down against the euro and up against the yen, with EUR/GBP up 0.08% at 0.8545 and GBP/JPY up 0.18% at 157.76.

On Tuesday, the U.K. is to publish data on net lending to individuals.

The U.S. is to produce data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity. The U.S. is also to publish data on producer price inflation and a report on consumer confidence, a leading economic indicator.

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