Daily Market Outlook from ACFX 24/1/2014

[Atlas CapitalFx]

Daily Market Outlook

Posted by on January 24, 2013

Important Financial Indicators of the day Forecast Previous
EUR 10:30 (GMT) German Flash Manufacturing PMI 47.1 46.0
USD 15:30 (GMT) Unemployement Claims 359K 335K

Currencies

AUD/USD Australian
currency rose versus the yen after a survey of companies
showed Chinese manufacturing expanded at the fastest pace in two
years, brightening the outlook for commodity exports.

Australia’s dollar rose 0.3 percent to 93.79 yen as of 3:19
p.m. in Sydney. It fell 0.3 percent to $1.0520. New Zealand’s
currency gained 0.7 percent to 75.19 yen and added 0.1 percent
to 84.34 U.S. cents.

USD/JPY The yen weakened, snapping a three- day advance against the dollar, as signs of strengthening manufacturing in China curbed Asian stock losses and damped demand for safer assets.
The yen lost 0.7 percent to 89.18 per dollar as of 1:09
p.m. in Tokyo after gaining 1.7 percent in the previous three
days. The Japanese currency reached 90.25 on Jan. 21, the
weakest level since June 2010. It fell 0.6 percent to 118.75 per
euro from yesterday. The dollar was little changed at $1.3315
per euro.

USD/CAD The Canadian dollar fell to parity against its U.S. counterpart after the Bank of Canada said the need to raise interest rates is less urgent as the economy will take longer to reach full output
The Canadian dollar, known as the loonie for the image of the aquatic bird on the C$1 coin, fell 0.7 percent to 99.92 cents per U.S. dollar at 5:02 p.m. in Toronto. It touched the weakest level since Nov. 19. One loonie buys $1.0008.
The currency weakened beyond its 200-day moving average at
99.83 cents.

Commodities

Oil traded near the lowest level in
a week in New York after U.S. crude stockpiles gained and
capacity on the Seaway pipeline was reduced.

West Texas Intermediate crude for March delivery was at
$95.46 a barrel, up 23 cents, in electronic trading on the New
York Mercantile Exchange at 1:27 p.m. Sydney time. The contract
dropped $1.45 yesterday, the most since Dec. 21, to the lowest
price since Jan. 16. The average volume of all futures traded
was 75 percent above the 100-day average.
Brent for March settlement fell 32 cents to $112.48 a
barrel on the London-based ICE Futures Europe exchange. The
European benchmark contract was at a premium of $17.04 to WTI
futures, down from $17.57 yesterday. The gap was $15.16 on Jan.
17, the narrowest in almost six months

Gold will rally this year and into
2014 as U.S. Federal Reserve policy makers will probably
maintain asset purchases for two more years to buttress the
recovery of the largest economy, according to Morgan Stanley.
Gold for immediate-delivery fell 0.2 percent at $1,682.05 an ounce at 12:24 p.m. in Singapore. The price dropped to $1,625.85 on Jan. 4, the lowest level since August, after the release of the FOMC minutes. Gold, which slumped 5.5 percent in the three months to December, has gained 0.4 percent this year.

Equities

Asian stocks swung between gains and losses as Japanese shares rallied on a weaker yen, China’s manufacturing beat estimates and North Korea threatened a nuclear test. Apple Inc. (AAPL) suppliers fell after the company reported its slowest profit growth since 2003.
The MSCI Asia Pacific Index slid 0.1 percent to 131.96 as of 1:07 p.m. in Tokyo, after gaining as much as 0.1 percent and falling 0.4 percent. About four stocks rose for every three that retreated. The gauge jumped 10 percent through yesterday from Nov. 14, when elections were announced in Japan, spurring a rally in the country’s shares amid speculation the new government would do whatever was necessary to end deflation.

European stocks advanced, after remaining little changed for most of the day, as the U.S. House of Representatives gathered to vote on suspending the country’s debt limit and as results from Novartis to Unilever (ULVR) beat analyst estimates.
The Stoxx Europe 600 Index (SXXP) added 0.2 percent to 288.22 in London, as the number of shares rising and those falling were roughly even. The gauge this month surged to the highest level since February 2011 as U.S. lawmakers agreed on a compromise budget and American companies reported better-than-projected earnings.

U.S stocks rose, after benchmark indexes reached five-year highs, as lawmakers
voted to temporarily suspend the federal debt limit and technology
stocks rallied amid better-than-forecast earnings.

The Standard & Poor’s 500 Index gained 0.2 percent to 1,494.81 at 4
p.m. in New York. The Dow Jones Industrial Average rose 67.12 points, or
0.5 percent, to 13,779.33. About 6.1 billion shares changed hands on
U.S. exchanges, in line with the three-month average. Nasdaq 100 futures
dropped 1.7 percent to 2,712 as of 6:18 p.m. on Apple’s earnings
report.