Daily Market Overview by IFC Markets

Re: Daily Market Overview by IFC Markets

Postby Akriti » Wed Oct 02, 2013 7:07 am

US Dollar Index Defies U.S. Government Closure, Eyes on ECB Conference

Despite the U.S. government shut down the Wall Street closed in green yesterday looking for a quick break through of the budget gridlock. The S&P 500 rose by 0.80% to 1,695, Dow Jones Industrial Average Index gained 0.41% to 15,191.70 and NASDAQ climbed by 1.23%. The US dollar index recovered against previous expectations that uncertainty would weigh on the greenback. The US dollar index bounced up from yesterday support at 79.84 to as high as 80.25.

Moreover, market participants are betting that U.S government closure would be short and soon Republican and Democrats would find a solution. However, should we see further enhancement of gap that separates them, uncertainty would definitely weigh over risk appetite and stocks would start the downside.

See more: http://www.ifcmarkets.com/en/market-overview/show/1517
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Thu Oct 03, 2013 7:09 am

US Fiscal Budget Deadlock Goes On, Debt Ceiling Looms, Euro Surges VS Greenback

The US dollar was smashed across the board losing the most against the Euro and the Japanese Yen as budget impasse extends to next week. Yesterday meeting between Barack Obama and congressional leaders didn’t changed anything with both sides repeating themselves. Republicans want to use 2014 budget and debt ceiling to increase pressure on Obama to delay it health-care program. Every week the U.S. government is shut down, 0.1% is trimmed from economic growth and failure to expand the $16.7B debt ceiling by Oct. 17 would have greater and global implications.

Moreover, yesterday the ADP Report said that in September employment excluding farming and public sector increased by 166K, less than projected rise of 177K adding pressure on the greenback. The US dollar index retreated below key support at 80.00 increasing technical downside bias and is likely to continue towards next support at 78.95.

See more: http://www.ifcmarkets.com/en/market-overview/show/1518
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Fri Oct 04, 2013 8:02 am

BOJ Holds Monetary Stance, NFP Could Be Delayed, GBPUSD Waving Down

U.S government shut down continues for a fourth day spreading fears that Democrats and Republicans would be unable to agree on looming Debt Ceiling as well. No agreement on 2014 fiscal budget is reducing growth by 0.2% per week according to Goldman Sachs while there is an additional pressure by declining reduction as federal workers are not paid. Indirectly though economy could be further hurt by falling confidence in business and consumption.

The first signal of a damaged confidence came out yesterday by falling ISM Non-Manufacturing PMI to 54.4 in September, down from 58.6 in August and lower than expected at 57.2 and that increased pressure on the greenback which was losing against its most major currency pairs.

See more: http://www.ifcmarkets.com/en/market-overview/show/1519
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Mon Oct 07, 2013 6:41 am

U.S Debt Ceiling Talks Eyed, Risk Appetite Squeezed as U.S Fiscal Gridlock Continues

The new week starts with U.S. Government remaining closed for one week now with talks between Democrats and Republicans intensifying during the weekend. Republican House Speaker John Boehner is accusing the government for not discussing while at the same time he sets preconditions over raising debt ceiling. U.S. shut down continuation impasse is now really spreading fear among market participants who see that the same gridlock could extend to debt ceiling issue with more serious effects over financial markets.
John Boehner said during the weekend that there are not enough votes in the U.S. House of Representative to approve raising borrowing limit resolution without President Barack Obama giving something in return from health care law.

See more: http://www.ifcmarkets.com/en/market-overview/show/1520
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Tue Oct 08, 2013 6:35 am

U.S Shut Down and Debt Ceiling Still Dominate Financial Markets

Like the previous days U.S government remains closed down and there has been no progress regarding debt ceiling so the situation is the same, although as we approach October 17 and nothing changes risk appetite is further squeezed. Last night S&P 500 dropped by 0.85% and Dow Jones Industrial Average declined by 0.90% reflecting sentiment worsening.

Still, Asian equities recovered today after yesterday’s losing trading with NIKKEI 225 advancing by 0.30% and Hang Seng gaining by 0.93%, despite disappointing Japanese Current Account and weaker Chinese HSBC Services PMI. Japan’s current account surplus stood at ¥161.5B for August while was estimated to be at ¥520.0B and was down from ¥577.3B the previous month.

See more: http://www.ifcmarkets.com/en/market-overview/show/1521
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Wed Oct 09, 2013 6:47 am

Yellen Next Fed Chairman Raises Risk Capped by U.S Political Impasse and IMF Outlook Cut

As the political standoff that drove U.S government to closure and is now threatening the world with a U.S default continues, the Japanese Yen was weakening on Barack Obama’s decision to nominate Janet Yellen to succeed Ben Bernanke at Fed’s head next year. Janet Yellen is considered quite dovish and that interpreted by market that Fed is likely to remain accommodative for a longer period, boosting demand for riskier assets and thus setting pressure on the Yen.

Nonetheless, Barack Obama repeated that would talk with House speaker John Boehner after the shutdown ends and the risk of default is eliminated, though Republicans insist on spending cuts and modifications on Obamacare law.

See more: http://www.ifcmarkets.com/en/market-overview/show/1522
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Thu Oct 10, 2013 7:08 am

Greenback Appreciates on Yellen, FED Minutes and Hopes of Political Break Through

The greenback was gaining ground across the board against its major counterparties after Janet Yellen was nominated as the next Fed Chairman, coupled by Fed Minutes of the 17-18 September meeting and eventually there are some chances for short term deal on debt limit to avoid default. The US dollar index advanced as high as 80.55 making its biggest corrective move after a month of declines. To further look into the key drivers of FX market, we firstly consider the greenback appreciated due to uncertainty ruled out about who would succeed Ben Bernanke, despite that Janet Yellen is perceived as a dove among market participants.

See more: http://www.ifcmarkets.com/en/market-overview/show/1523
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Mon Oct 14, 2013 8:10 am

Failure to Break Political Gridlock Raises Risk of US Default, Nearing Deadline of Oct. 17

Risk appetite is fading as US lawmakers failed to agree on Saturday on extending the upper limit of the US debt above $16.7T. Christine Lagarde, head of IMF warned for a “massive disruption” to the global financial markets and real economy if the borrowing limit is not raised before the 17th of October.

On Friday, market participants saw White House meeting and talks over a short-term deal optimistically with global indices rising substantially however as talks failed during the weekend risk sentiment weighed. The S&P/ASX 200 declined by 0.44% while NIKKEI 225 is closed today on Health Sports Day. Moreover, the Senate and the House are still going to meet today on Columbus Day and US is on holiday, however hopes for resolution are weak amid Republicans have the majority of votes in the House and their conservatives are not willing to make any concessions to Barack Obama.

See more: http://www.ifcmarkets.com/en/market-overview/show/1525
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Tue Oct 15, 2013 6:59 am

Optimism Returns on Possible Debt Deal on Tuesday, Aussie Gains

Hopes that US policymakers get closer to a political break through and that has improved market participants’ optimism leading risk appetite higher. US equities eventually closed in positive light after beginning in negative territory, with S&P 500 advancing by 0.41%, Dow Jones Industrial increasing by 0.42% and NASDAQ gaining by 0.62%. Asian shares followed as NIKKEI 225 was by 0.26% higher and Hang Seng climbed by 0.38%.

Optimism among investors grew substantially yesterday after Harry Reid, a Senate Democrat majority leader and its Republican counterparty Mitch McConnel said that on Tuesday a bipartisan deal may be announced that would extend US debt ceiling and fund government budget. What is discussed for a short term solution is that federal government would be funded until January 15 2014 and borrowing limit would be increased until February 15.

See more: http://www.ifcmarkets.com/en/market-overview/show/1526
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Wed Oct 16, 2013 8:00 am

All Eyes on Last Chance to Break Through US Political Impasse

There has been no progress on Tuesday regarding US debt ceiling impasse, contrary to what investors were hoping. In addition, Fitch rating agency placed the United States triple A rating on watch negative. Earlier, Empire Manufacturing dropped to 1.5 for October, while was projected at 8.2 and was down compared to 6.3 figure in September, indicating New York manufacturers confidence has weakened after a more than a 2-week government shut down. However, hopes persist in financial markets that a deal would be concluded on the last day before 17 of October when US likely will not be able to borrow to meet its obligations.

See more: http://www.ifcmarkets.com/en/market-overview/show/1527
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