Daily Video Review - 21/07
- Donald Herison
- English
- MARKETS NEWS
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1. Wall Street opened slightly higher on Monday, with the Nasdaq composite hitting a record for the third straight day, as better-than-expected earnings from big companies boosted investor confidence.
On Friday, strong earnings from Google (O:GOOGL) pushed the tech-heavy Nasdaq to a record close, which gained 4.3 percent for the week, its largest weekly gain since October while the S&P 500 stopped just short of its record high.
2. U.S. oil futures fell to the lowest level in more than three months on Monday, as ongoing worries over high domestic U.S. oil production, despite a declining rig count, weighed.
On the New York Mercantile Exchange, crude oil for September delivery hit an intraday low of $50.47 a barrel, a level not seen since April 10, before trading at $50.72 during U.S. morning hours, down 49 cents, or 0.96%.
3. PayPal Holdings Inc (O:PYPL) shares jumped as much as 11 percent in their highly anticipated return to the Nasdaq on Monday, valuing the company at about $52 billion.
PayPal, spun off from eBay Inc (O:EBAY), is widely expected to build partnerships with e-commerce rivals and try to seize market share from startups such as Stripe and Square and technology behemoth Apple Inc (O:AAPL), which unveiled its own mobile payments service last year.
4. The U.S. dollar edged up to six-year highs against its Canadian counterpart on Monday, as expectations for an upcoming U.S. rate hike continued to support the greenback, while downbeat wholesale sales data from Canada weighed on the local currency.
USD/CAD hit 1.2999 during early U.S. trade, the daily high; the pair subsequently consolidated at 1.2995, adding 0.18%.
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1. The Nasdaq composite index opened at a record high on Friday after strong quarterly results from Google (O:GOOGL), while Boeing (N:BA) kept the Dow in the red.
2. The dollar moved higher against a basket of other major currencies on Friday, after the release of upbeat U.S. inflation and housing data added to expectations for a rate hike in the near future.
3. Crude oil futures were little changed on Friday, hovering close to four-month lows as the stronger dollar coupled with concerns over a global supply glut continued to weigh on the commodity.
4. Boeing Co (N:BA) on Friday said it will take a $536 million after-tax charge in its second-quarter results to deal with deficiencies in the fuel system on the KC-46 aerial refueling tanker it is developing for the U.S. Air Force.
5. Gold prices held steady at eight-month lows in European morning hours on Friday, as the stronger dollar and increased risk-appetite following positive news from Greece weighed heavily on the precious metal.
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1. Manufacturing activity in the Philadelphia-region expanded at the slowest pace in four months in July, dampening optimism over the U.S. economic outlook, official data showed on Thursday.
In a report, the Federal Reserve Bank of Philadelphia said that its manufacturing index deteriorated to a reading of 5.7 this month from June's reading of 15.2. Analysts had expected the index to fall to 12.0 in July.
2. U.S. stocks opened higher on Thursday as investors cheered Greek parliamentary approval of a bailout plan and on strong quarterly reports from U.S. bluechip companies.
The Dow Jones industrial average (DJI) rose 68.55 points, or 0.38 percent, to 18,118.72. The S&P 500 (SPX) gained 10.79 points, or 0.51 percent, to 2,118.19 and the Nasdaq composite (IXIC) added 37.31 points, or 0.73 percent, to 5,136.25.
3. Crude oil futures rebounded from the previous day\'s steep decline on Thursday, but gains were limited amid ongoing concerns over a global supply glut.
On the ICE Futures Exchange in London, Brent oil for September delivery tacked on 60 cents, or 1.04%, to trade at $57.72 a barrel during U.S. morning hours.
4. The European Central Bank on Thursday increased its emergency lending to Greek banks by €900 million and added that it is operating under the assumption that Greece will remain in the euro zone.
Speaking at a press conference after the bank’s decision to keep euro area interest rates on hold at record lows, ECB President Mario Draghi said several positive things have happened to allow the increase in emergency liquidly assistance.
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1. Federal Reserve Chair Janet Yellen said on Wednesday the U.S. central bank remains on track to raise interest rates this year, with labor markets expected to steadily improve and turmoil abroad unlikely to throw the U.S. economy off track.
"If the economy evolves as we expect, economic conditions likely would make it appropriate at some point this year to raise the federal funds rate," Yellen said in testimony prepared for the U.S. House of Representatives Financial Services Committee, affirming the view of a central bank prepared to gradually raise rates after more than six years at a near-zero level.
2. The dollar turned broadly higher against a basket of other major currencies on Wednesday, after Federal Reserve Chair Janet Yellen said the central bank is on track to raise interest rates "before year end."
In prepared remarks released before her testimony to the House Financial Services committee, Fed Chair Yellen said that the Fed is likely to raise rates "at some point this year." She added that the U.S. labor market healthier but "still some slack."
3. The Canadian dollar fell to six-year lows on Wednesday after the Bank of Canada cut its overnight rate and lowered its growth forecast for this year, largely due to a weaker outlook for business investment in the energy sector.
USD/CAD jumped 1.56% to 1.2926, the most since March 2009 from around 1.2787 ahead of the announcement.
4. Prime Minister Alexis Tsipras battled to win lawmakers' approval on Wednesday for a bailout deal to keep Greece in the euro, while the country's creditors, pressed by the IMF to provide massive debt relief, struggled to agree a financial lifeline.
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1. The dollar regained ground against the other major currencies on Tuesday after initially falling to session lows when data showed that U.S. retail sales unexpectedly fell last month.
The dollar turned lower after the Commerce Department said retail sales fell 0.3% in June, compared to expectations for a 0.2% increase
2. Crude oil futures recovered from earlier losses on Tuesday, as traders looked ahead to weekly data on U.S. stockpiles of crude and refined products later in the day.
On the New York Mercantile Exchange, crude oil for August delivery inched up 15 cents, or 0.25%, to trade at $52.35 a barrel during U.S. morning hours after hitting a session low of $50.90 earlier.
3. U.S. retail sales unexpectedly fell in June as households cut back on purchases of automobiles and a range of other goods, which could raise concerns the economy was slowing again.
Tuesday's weak retail sales report, together with signs of some softening of the labor market, could dampen expectations for an interest rate hike from the Federal Reserve this year, which most economists expect could come in September.
4. U.S. stocks edged higher, trading in a narrow range, early on Tuesday as investors focus on U.S. corporate earnings and oil prices pared some losses after a steep fall earlier in the day.
Oil prices had tumbled due to expectations of increased supply after Iran's nuclear deal, but trimmed some losses as the expected rise in supply was already priced in over recent weeks.
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