Re: Daily Market Reviews by MAYZUS.com
Posted: Thu May 01, 2014 7:43 am
1 May 2014: The FED Cuts Monetary Easing Program By Another 10 Billion
Meeting of the FED did not bring any surprises, participants of the markets were almost sure that the program of quantitative easing will be reduced by another 10 billion. The interest rate has been kept on the same level within the diapason of the 0%-0,25%. Before we actually have got results of the meeting, we could follow publications of the data on gross domestic product of the USA, which has raised, according to the preliminary data, only for 0,1%, while growth of 1,2% was expected. The Chicago index of business activity for April, meanwhile, significantly surpassed market expectations of 56,7 points, having made 63 points. The April indicator of employment accordingly to ADP, in turn, reached the maximum level since November and has showed the number of the 220 thousand.
As a result, after the FED has stated their decision, the Dow Jones Industrial Average index added 0,28% and was closed on a level of the 16580,84 points, S&P 500 index grew up for 0,30% and reached a level of the 1883,95 points and the Nasdaq Composite index increased for 0,27% reaching a level of the 4114,56 points.
The European stock markets showed multidirectional dynamics waiting for meeting of the FED. The release of statistical data of the Eurozone and Germany also did not give essential support to indexes. So, retails in Germany for March decreased by estimated 0,7%, coinciding with the forecast. The unemployment rate for April, also coincided with the forecast and has made 6,7%. Slightly lower than forecasts, there was consumer price index in EU in April, showing growth for 0,7%, at the moment then analysts were predicting growth of the 0,8%. Following the results of the trading session, the index of the London stock exchange, FTSE 100 grew by 0,15%, the German DAX added 0,20% and French CAC 40 decreased by 0,23%.
The released yesterday data had a bad influence on the commodities, which are also continue to decrease today. Data on weekly oil stocks from U.S. Energy Information Administration stated that the oil stock for a week grew up to 1,698 million barrels. As a result, Brent is losing 0,45% and is traded this morning on a level of the 107,05$ for barrel. WTI is down for 0,38% and is traded on a price of the 98,73$ for barrel. Gold and silver are decreasing for 1,03% and 0,60% accordingly, traded on a price of the 1282,60$ and 19,06$ for troy ounce.
Meeting of the FED did not bring any surprises, participants of the markets were almost sure that the program of quantitative easing will be reduced by another 10 billion. The interest rate has been kept on the same level within the diapason of the 0%-0,25%. Before we actually have got results of the meeting, we could follow publications of the data on gross domestic product of the USA, which has raised, according to the preliminary data, only for 0,1%, while growth of 1,2% was expected. The Chicago index of business activity for April, meanwhile, significantly surpassed market expectations of 56,7 points, having made 63 points. The April indicator of employment accordingly to ADP, in turn, reached the maximum level since November and has showed the number of the 220 thousand.
As a result, after the FED has stated their decision, the Dow Jones Industrial Average index added 0,28% and was closed on a level of the 16580,84 points, S&P 500 index grew up for 0,30% and reached a level of the 1883,95 points and the Nasdaq Composite index increased for 0,27% reaching a level of the 4114,56 points.
The European stock markets showed multidirectional dynamics waiting for meeting of the FED. The release of statistical data of the Eurozone and Germany also did not give essential support to indexes. So, retails in Germany for March decreased by estimated 0,7%, coinciding with the forecast. The unemployment rate for April, also coincided with the forecast and has made 6,7%. Slightly lower than forecasts, there was consumer price index in EU in April, showing growth for 0,7%, at the moment then analysts were predicting growth of the 0,8%. Following the results of the trading session, the index of the London stock exchange, FTSE 100 grew by 0,15%, the German DAX added 0,20% and French CAC 40 decreased by 0,23%.
The released yesterday data had a bad influence on the commodities, which are also continue to decrease today. Data on weekly oil stocks from U.S. Energy Information Administration stated that the oil stock for a week grew up to 1,698 million barrels. As a result, Brent is losing 0,45% and is traded this morning on a level of the 107,05$ for barrel. WTI is down for 0,38% and is traded on a price of the 98,73$ for barrel. Gold and silver are decreasing for 1,03% and 0,60% accordingly, traded on a price of the 1282,60$ and 19,06$ for troy ounce.