Daily Market Review - 29/10

 

1. Wall Street was lower on Thursday as investors digested weaker-than-expected U.S. economic growth in the third quarter and the Federal Reserve's hints of a possible rate hike in December.

 

The Fed, which kept rates unchanged at its policy meeting that ended Wednesday, downplayed concerns about global growth and indicated confidence in the U.S. job market's recovery and the economy's capacity to absorb a rate increase.

Data on Thursday underscored the strength in the labor market, showing that new applications for unemployment benefits remained near levels last seen in 1973.

2. Contracts to buy previously owned U.S. homes fell unexpectedly in September, a warning sign that the housing market recovery may be stumbling.

The National Association of Realtors said on Thursday its Pending Home Sales Index, based on contracts signed last month, dropped 2.3 percent to 106.8, the second lowest reading of 2015. The index was up 3.0 percent from the same month a year ago.

Economists polled by Reuters had forecast pending home sales rising 1.0 percent last month.

3. The dollar trimmed losses against the other major currencies on Thursday, after data showed that the U.S. economy grew less than expected in the third quarter, as hopes for a U.S. rate hike before the end of the year continued to support

The dollar was lower against the yen, with USD/JPY down 0.16% at 120.89.

The Commerce Department said U.S. gross domestic product grew at an annual rate of 1.5% in the three months to September, missing expectations for growth of 1.6%. The U.S. economy grew 3.9% in the previous quarter.

Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 24 increased by 1,000 to 260,000 from the previous week’s total of 259,000. Analysts had expected jobless claims to rise by 4,000 to 263,000.

4. Gold prices plunged sharply to a more than two-week low on Thursday, after data showed the U.S. economy grew mostly in line with expectations in the third quarter and as the Federal Reserve signaled that a December rate hike was still on the table.

Gold for December delivery on the Comex division of the New York Mercantile Exchange tumbled $22.10, or 1.88%, to trade at $1,154.00 a troy ounce during U.S. morning hours. It earlier fell to $1,152.40, the lowest since October 9.

5. Natural gas futures pushed higher to move further away from the lowest level in more than three years on Thursday after data showed natural gas supplies rose less than expected last week.

 

Natural gas for delivery in December on the New York Mercantile Exchange soared 7.1 cents, or 3.07%, to trade at $2.369 per million British thermal units during U.S. morning hours. Prices were at around $2.347 prior to the release of the supply data.

 

 

 

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