September 5, 2014 - Daily Market News
Today's Hot Assets: USD, gold, EUR
The European Central Bank surprised markets by cutting the interest rate to 0.05%. Draghi also signaled that $ 700000000000 € could be added to the economy. The Euro tumbled causing Indices to trade higher. US Indices reached Intraday records but then declined. Markets became hesitant ahead of today's data. The US nonfarm Payroll report and unemployment rate will be released today. For the past 6 months the U has seen gains above 200,000 jobs per month and the expectations is to see that 225,000 jobs were created during August The report will be released at 12:30 GMT. In session close the S & P 500 was 0.15% lower and the Dow Jones was 0.05% lower. Asian markets were lower across the region. The Nikkei declined 0.05% as the yen dropped slightly against the US dollar, trading at ¥ 105.15.the Hang Seng lost 0.41% as it followed US sentiment. European markets were mixed today ahead of the data and in response to cease fire talks in Ukraine. Meanwhile, the badger is higher by 0.16%, while the FTSE 100 is leading the CAC 40 lower. They were down 0.18% and 0.08% respectively.
WTI crude is still trading above $ 94 / barrel. The EIA reported that US crude-oil inventories declined 900,000 barrels during the previous week, which was less than the expected decline of 2 million barrels. The price may be influenced by today's US work releases and next week we could see the price under pressure as Hurricane Norbert is moving to Mexico. Gold declined yesterday as investors felt the ECB interest rate cut would dampen demand for the precious metal while the dollar would continue to rise and hurt the precious metal's safe haven appeal. Traders should wait for today's data before making any moves.
Today's Home Events:
09.00 GMT: EUR - GDP - measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy
12.30 GMT: USD - Nonfarm Payrolls - measures the change in the number of people employed during the previous month, excluding the farming industry.
12.30 GMT: USD - Unemployment rate - measures the percentage of the total labor force that is unemployed and actively seeking employment during the previous month.
