Daily Video Review - 29/12
- Donald Herison
- English
- MARKETS NEWS
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US markets moved higher on Friday reaching records once again. The gain came after markets were closed for the Christmas Holidays.
Asian markets were mixed across the region. The Nikkei lost 0.5% due to reports that a man is being tested for Ebola in Tokyo.
European markets are lower today after a third round of parliamentary elections in Greece failed. Greece now faces elections in January as parliament failed to elect Stavros Dimas as the new President. The parliament will now be dissolved and an election date will be called within 10 days.
Oil climbed due to unrest in Libya. Tanks were set on fire by militants at Libya’s largest oil port destabilizing production. This lowered supply and pushed prices higher. Gains are limited however as supply still remains very high.
Gold climbed strongly on Friday and almost reached $1,200/ounce due to rumours that China will increase monetary stimulus and loosen its lending policy. The metal is now falling back down as the Dollar strengthens. It is likely it could reach its support level as there is not much in the market to give it a boost today.
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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1) Futures Flat
US stock futures are little changed early Monday, indicating a lackluster start to the trading session.
This follows gains across major US markets on Friday. The S&P 500 rose 0.3% to close at a fresh record. The Nasdaq jumped by 0.7% and the Dow Jones industrial average inched up 0.1%.
There are no major economic releases slated for Monday.
2) Greek Vote
Investors will be watching a crucial vote to confirm a new president in Greece on Monday. If parliament fails to vote for a new president, this will trigger snap elections that could bring a popular anti-austerity party to power. Syriza has vowed to renegotiate the terms of Greece's bailout package and reverse many of the reforms that have helped the country return to economic growth.
3) International Markets
European markets are mixed in early trading.
Asian markets also closed with mixed results. Japan's Nikkei index finished with a 0.5% loss.
4) AirAsia Shares
AirAsia shares dropped sharply in Malaysia as investors reacted to the disappearance of a passenger jet bound for Singapore with 162 people on board.
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What is it? It checks the change in the total value of new loans issued to consumers and businesses in the private sector.
Borrowing and spending are positively correlated - consumers and businesses tend to seek credit when they are confident in their future financial position and feel comfortable spending money.
When? December 30th at 4:00am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the EUR to rise.
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What is it? It checks the change in the total quantity of domestic currency in circulation and deposited in banks.
It's positively correlated with interest rates - early in the economic cycle an increasing supply of money leads to additional spending and investment, and later in the cycle expanding money supply leads to inflation.
When? December 30th at 4:00am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the EUR to rise.
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What is it? It checks the change in the price of goods and services purchased by consumers.
Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.
When? December 30th at 3:00am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the EUR to rise.
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What is it? It checks the change in the selling price of homes with mortgages backed by Nationwide.
It's a leading indicator of the housing industry's health because rising house prices attract investors and spur industry activity.
When? December 30th at 2:00am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the GBP to rise.
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What is it? Members of Parliament will hold the third round of voting to elect the 9th President of the Hellenic Republic. A total of 180 votes are required to elect the President.
The winner will likely be projected before the official vote count is announced, based on early vote counts and exit polling.
When? December 29th all day long.
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What is it? It checks the level of a composite index based on 5 consumer-based economic indicators.
It’s a combined reading of 5 economic indicators including consumer confidence, consumer spending, tourism, new car sales, and retail activity.
When? December 29th at 2:00am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the CHF to rise.
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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1) Futures Firm
US stock futures were pointing to a positive open though a quiet session was expected to close out the shortened trading week.
On Wednesday, the Dow Jones industrial average inched higher to notch its second straight finish above 18,000. The S&P 500 closed relatively flat, and the tech-heavy Nasdaq gained 0.2%.
There are no major earnings due out Friday and no economic updates either.
2) Oil Rebounds
Crude oil ticked up in electronic trading Friday to trade above $56 a barrel. Oil prices have suffered sharp falls this year as a combination of abundant supplies, a strong US dollar and weaker demand from Europe and Asia deterred buyers.
3) Ruble Stabilizes
Russia's battered currency regained some poise Friday following a series of interventions by the government and central bank this week to halt a worsening financial crisis.
4) International Markets Overview
Most markets in Europe and Asia remained closed for holidays. Chinese stocks were the standout in Asia, with the Shangahi Composite rallying 2.8%
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European markets finished mixed yesterday. The DAX remained closed for Christmas Eve and the CAC 40 & FTSE traded for half a day.
US markets were mixed. The S&P 500 inched down 0.01% but the Dow Jones reached another record close. Initial Jobless Claims data beat expectations and showed only 280,000 people to sign up for unemployment. The market will remain closed today for Christmas but will open tomorrow as normal.
Asian markets were mixed. The Hang Seng remained closed. The Nikkei lost 0.25% as the Yen strengthened against the Dollar following comments from Kuroda. Kuroda, the governor of the bank of Japan, stated that lower oil prices should help the economy and showed confidence that the economy is making moderate progress. Hong Kong will remain closed until Sunday.
Oil dropped after data showing higher supplies. The API and EIA both reported that inventories climbed over the past week pushing the price back down to 55.25. The market is now closed and so there is no movement. It will reopen tomorrow.
Gold dropped towards $1,170/ounce as investors sold off their positions and US data came out positive; Jobless Claims beat expectations. The price reached a low of 1,172 but as the commodity market is now closed there is no movement.
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What is it? It checks the change in the total value of employment income collected by workers.
Income is correlated with spending - the more disposable income consumers have, the more likely they are to increase spending.
When? December 25th at 8:30pm Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the JPY to rise.
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What is it? It checks the change in the total value of sales at the retail level.
It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
When? December 25th at 6:50pm Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the JPY to rise.
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What is it? It checks the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
It's a leading indicator of economic health - production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions such as employment levels and earnings.
When? December 25th at 6:50pm Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the JPY to rise.
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What is it? It checks the change in the price of goods and services purchased by consumers in Tokyo, excluding fresh food.
Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.
When? December 25th at 6:30pm Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the JPY to rise.
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What is it? It checks the change in the inflation-adjusted value of all expenditures by consumers.
Consumer spending accounts for a majority of overall economic activity. It's one of the most important gauges of economic health due to the vast ripple effect consumer buying creates in the economy.
When? December 25th at 6:30pm Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the JPY to rise.
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US markets reached record levels again after the GDP report showed the economy to expand by its fastest pace in 11 years, gaining 5% over the last quarter.
Asian markets were mixed across the region. The Nikkei gained 1.24% as the Dollar rallied against the Yen yesterday climbing to a high of 120.8. Although it weakened slightly before the close of the session, it remained at a two week high against the Yen.
European markets finished mixed today. The DAX remained closed for Christmas Eve and the CAC 40 & FTSE traded for a half day.
Oil climbed on a number of factors. US GDP data showed that economic recovery is ongoing and suggested that oil demand may increase. Arabic OPEC producers also reported that they believe the price will climb back above $70/barrel by the end of next year. The rally was short lived, however, and the price is falling back down after a supply report from the API. The report showed that inventories climbed by 5.4million barrels in the past week. Traders should watch data from the EIA will release data at 3:30pm GMT.
Gold traded choppy yesterday. The price first gained as it rebounded from a sharp fall. However, it later fell following the US GDP data and rallies in the stock market. Bearish sentiment remains today and the selloff resumed after stronger than expected Initial Jobless Claims data.
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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1) Trading on Christmas Eve
US stock futures are relatively flat ahead of the open, though there is a positive bias in the markets.
This comes after the Dow Jones industrial average and S&P 500 hit record highs Tuesday, notching their fifth straight day of gains. The Dow surpassed 18,000 points for the first time ever.
This year, the Dow and S&P 500 have surged by nearly 9% and 13%, respectively.
Although the Nasdaq closed with a small loss Tuesday, it's jumped by just over 14% since the start of the year.
It's widely expected that trading volumes will be low Wednesday as many market participants have already left for the holiday season.
The markets close early at 1:00pm today. Markets are also closed for the Christmas holiday on Thursday.
2) Corporate Mover -- Sony
Shares in Sony (SNE) jumped by 4% in Japan and could be on the move Wednesday in New York.
On Tuesday, the company said it will release the controversial film 'The Interview' at a limited number of theaters starting on Christmas Day, despite threats and attacks from hackers.
Sony also announced it will start offering its Playstation streaming service on a number of Samsung Smart TVs starting next year.
3) Russian Markets Steady
Russian traders took difficult news in their stride after Standard & Poor's warned there's a 50% chance the nation's debt will be downgraded to junk.
Stock markets are relatively steady. The ruble is edging up after taking a 40% dive over the course of the year.
4) International Markets Overview
A few European markets are open Wednesday but trading is mixed early in the day.
Asian markets closed with mixed results. The Nikkei in Japan jumped by 1.2% while the Shanghai Composite index dropped by 2%.
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