18/03/2014 - March Daily Review
- Mark Densel
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March 18, 2014 - Daily Market News
Today's Hot Assets : EUR , USD , Gold
During the referendum on Sunday , chosen by 93 % of the people in the Crimea rejoin Russia . The international community immediately stated that the vote was not legal as they were made under military intervention . As expected , sanctions soon followed . However , they are much milder than expected and the absence of violence has sparked demand for riskier assets . Traders returned to the stock market and the nearby U.S. trade, the Dow Jones gained 1.13 % , the S & P 500 gained 0.96 % , and the Nasdaq gained 0.81 % . Asian markets higher as sentiment lifted . The Nikkei gained 0.94 % as the yen weakened against the dollar and the Hang Seng added 0.5 % . The U.S. Federal Reserve will begin their two-day meeting today monetary policy , the first with Janet Yellen as Chairwoman . Investors expect it to be the third meeting where the Fed will scale back the stimulus money by another 10 billion U.S. dollars . European stocks opened lower on hopes of meeting and leading to data from Europe . The European and German ZEW Economic sentiment is the same will be released at 10am ( GMT ) .
WTI declined due to speculation that the sanctions put in Russia is not likely to interrupt supply . Russia and Europe are interdependent ; Europe is dependent on the export from Russia while Russia relies on the income it provides . The prices are now rising slightly as protestors in Libya shut a pipeline , lowering supply . Gold prices also fell as investors see less need for safe haven assets . The metal is also taking back ahead of the Federal Reserve Meeting . U.S. data will be a positive addition to the speculation that bad data is a result of bad weather rather than weakness in the economy once again . Traders should focus on U.S. data later today including the consent of the Building and Core CPI at 12:30 ( GMT ) as well as a word from Putin who is set to address the parliament of Russia later .
Main Event of the day :
10:00 GMT : EUR - ZEW Economic sentiment - relative rate of six - month economic outlook for the euro zone .
10:00 GMT : EUR - German ZEW Economic sentiment - gauges the six- month economic hopes
12:30 GMT : USD - Building permits - measures the change in the number of new building permits issued by the government . Building permits are a key indicator of demand in the housing market .
12:30 GMT : USD - Core CPI - measures the change in prices of goods and services , excluding food and energy .
15:40 GMT : CAD - BoC Gov Poloz speaking - I talk to the Chamber of Commerce , Halifax
17:45 GMT : GBP - Gov. Carney speaks Boe - Due to speak at the annual Mais lecture , London