Daily Market Outlook from ACFX 10/03/2013

[Atlas CapitalFx]

Daily Market Outlook from ACFX 10/03/2013


Important Financial Indicators of the day

GBP - 08:00 (GMT) - Manufacturing PMI - Forecast 57.5 - Previous 57.2

USD - 14:00 (GMT) - ISM Manufacturing PMI Forecast 55.3 - Previous 55.7



Currencies

•EUR/USD The dollar slid to the lowest since Jan. 3 versus the pound after a partial shutdown of the U.S. government began with Congress in partisan dead-lock.

•The dollar fell 0.3 percent to $1.6233 versus the pound as of 7:03 a.m. in London and touched as low as $1.6247, declining for a third day. The U.S. currency fell 0.1 percent to $1.3541 per euro. The yen rallied 0.1 percent to 98.16 per dollar after falling as much as 0.5 percent. It was little changed at 132.92 per euro.

•AUD/USD Australia’s dollar climbed against all 16 major peers after the Reserve Bank refrained from cutting interest rates today.
•The Australian dollar advanced 0.8 percent to 93.96 U.S. cents as of 3:41 p.m. in Sydney. Its New Zealand counterpart was little changed at 83.03 U.S. cents.

•USD/CAD Canada’s dollar touched a four-day high after a report showed gross domestic product increased at the fastest pace in two years in July, adding to evidence the nation’s economy is rebounding from a second-quarter slowdown.

•The loonie, nicknamed for the image of the aquatic bird on the C$1 coin, appreciated as much as 0.3 percent to C$1.0275 per U.S. dollar before erasing gains at day’s end to trade little changed at C$1.0309 at 5 p.m. in Toronto. One Canadian dollar buys 97 U.S. cents.




Commodities

•Oil West Texas Intermediate slid for a third day as the U.S. government shut down over a budget stalemate, threatening to slow the economy and reduce demand in the world’s largest oil consumer. •WTI for November delivery fell as much as 49 cents to $101.84 a barrel in electronic trading on the New York Mercantile Exchange and was at $101.97 at 1:33 p.m. Singapore time. The contract decreased 0.5 percent to $102.33 yesterday, the lowest level since July 3. The volume of all futures traded was about 46 percent below the 100-day average. Prices increased 6 percent last quarter.

•Brent for November settlement fell as much as 67 cents, or 0.6 percent, to $107.70 a barrel on the London-based ICE Futures Europe exchange. The European benchmark was at a premium of $5.80 to WTI futures, from $6.04 yesterday.

•Gold held losses on speculation that the first U.S. government shutdown in 17 years, which started at midnight in Washington, will be short-lived as lawmakers are forced to seek a compromise. Platinum touched an 11-week low.

•Bullion for immediate delivery fell as much as 0.3 percent to $1,324.95 an ounce, extending yesterday’s 0.6 percent loss, and was at $1,328.35 at 12:24 p.m. in Singapore. Platinum fell as much as 0.6 percent to $1,395.13 an ounce, the lowest level since July 1, before rising 0.2 percent to $1,406.60.




Equities

•Asian stocks rose, led by Japanese shares, after Prime Minister Shinzo Abe said the nation will increase its sales tax as planned. Gains were limited by the first partial U.S. government shutdown in 17 years.

•The MSCI Asia Pacific Index rose 0.3 percent to 138.96 as of 2:37 p.m. in Tokyo with all but three of the 10 industry groups advancing. Japan will raise its sales tax in April to 8 percent from 5 percent, Abe said today. U.S. lawmakers passed a midnight deadline without reaching a compromise to keep funding the government. Both sides of U.S. politics also are still in dispute over raising the nation’s $16.7 trillion debt ceiling

•European stocks futures climbed, indicating the Stoxx Europe 600 Index will rebound from its biggest decline in a month, as investors gauged the impact of a partial shutdown of the U.S. government. U.S. stock futures and Asian shares advanced.

•Futures on the Euro Stoxx 50 (SX5E) expiring in December added 0.3 percent to 2,887 at 7:23 a.m. in London. Contracts on the U.K.’s FTSE 100 Index increased less than 0.1 percent. Standard & Poor’s 500 Index futures climbed 0.2 percent, while the MSCI Asia Pacific Index rose 0.2 percent.

•U.S stocks slid, paring a quarterly gain for the Standard & Poor’s 500 Index, as a stalemate over the federal budget sent the government toward a potential shutdown at midnight.

•The S&P 500 fell 0.6 percent to 1,681.55 at 4 p.m. in New York. The benchmark gauge added 3 percent for the month, giving it a quarterly gain of 4.7 percent, as the Federal Reserve kept its $85 billion of monthly bond-buying. The Dow Jones Industrial Average lost 128.57 points, or 0.8 percent, to 15,129.67 today. About 6.3 billion shares changed hands on U.S. exchanges, 8.7 percent above the three-month average.