Courtesy of Pivotfarm
Markets in a Flash
· Asian equity markets closed up across the board overnight posting strong gains. The Nikkei 225 was up + 2.70%, while the Shanghai Index was up +2.26%.
· European equity markets started the day positive but at the European lunchtime the markets had fallen into negative territory. The FTSE 100 was down more than -0.25%.
· Commodities seem to be trading slightly higher this morning. Gold has risen slightly retracing some of its falls from yesterday which saw it at a 2 and a half month low.
· The GBP and the EUR are trading close to their recent highs against the USD. The EUR/USD is trading around the 1.3000 area.
· US equity futures are fluctuating this morning offering no real indication of direction at the opening bell.
European markets break their six day rising streak as the European Stoxx 600 falls -0.12%. The European markets opened higher on Wednesday morning before falling into negative territory. Mervyn King, Governor of the Bank of England, made comments on Wednesday morning which may have put bearish forces on the markets in Europe. He expressed that the UK would be in no rush to raise interest rates, and indicated that conditions were nowhere near normal.
0700ET – MBA Purchase Applications
Purchase Index – W/W Change
Previous 3.4 % Actual 2.0 %
This data shows a further rise in the number of mortgage applications for the US property market. This data shows that the demand in the housing markets has risen.
0830ET – Durable Goods Orders
New Orders – M/M change
Previous -1.1 % Consensus 1.0 %
Consensus Range 0.4 % to 4.0 % Actual -1.0 %
The figure shows the monthly change in the number of new orders placed with manufacturers for immediate or future delivery of hard goods. Last month’s reduction was the first that had been reported since the end of 2009.Todays repeat of a reduction in new orders comes in unexpectedly lower than predicted. This reduction will put bearish forces on the US equity markets and the USD.
Coming up Today
1030ET – Petroleum Status Report
The weekly report by the Energy Information Administration provides data on US petroleum stocks. A reduction in stocks will show an increase in the demand for petroleum and may be taken as an indicator of an increase in spending. A low figure may put bullish pressure on oil prices and oil companies.
1400ET – Beige Book
Released roughly every 6 weeks the beige book is evidence of economic conditions in the US. It is used by the Fed at its meeting prior to setting interest rates. The release of the book does not have major effects on the markets, but the details contained within can result in interest rate changes in the economy.
Provided by Pivotfarm.com – Support and Resistance Research