Daily Market Outlook from ACFX 08/19/2013

[Atlas CapitalFx]

Daily Market Outlook from ACFX 08/19/2013


Currencies

◾EUR/USD The euro was 0.4 percent from a one-week high against its U.S. peer before German data this week
that analysts predict may show the currency bloc’s largest
economy is gaining momentum

◾The euro bought $1.3324 as of 1:28 p.m. in Tokyo from $1.3329 at the end of last week, when it touched $1.3380, the strongest level since Aug. 9. The currency was little changed at 130.01 yen. The dollar added 0.1 percent to 97.58 yen, after earlier strengthening as much as 0.3 percent.

◾AUD/USD Australia’s dollar rose to a three-week high on speculation minutes tomorrow of the Reserve Bank’s meeting this month will signal the central bank is in no hurry to cut interest rates.

◾The Australian currency gained 0.3 percent to 92.15 U.S.
cents as of 2:30 p.m. in Sydney from Aug. 16, after touching
92.33, the highest since July 29. New Zealand’s dollar gained
0.2 percent to 81.20 U.S. cents, after touching 81.29, the
strongest since June 14.




Commodities

◾Oil West Texas Intermediate oil swung between gains and losses near a two-week high. Goldman Sachs Group Inc. raised its price forecasts for Brent, citing supply disruptions in Libya and Iraq.

◾WTI for September delivery, which expires tomorrow, climbed 9 cents to $107.55 a barrel in electronic trading on the New York Mercantile Exchange at 12:20 p.m. Singapore time. The volume of all futures traded was about 3 percent above the 100-day average. The contract ended the session at $107.46 on Aug. 16, the highest close since Aug. 1. The more active October future was up 7 cents at $107.36.

◾Brent for October settlement increased 8 cents to $110.48 a
barrel on the London-based ICE Futures Europe exchange. It was
at a premium of $3.12 to WTI. The spread narrowed for the first
time in a week on Aug. 16 to $3.11.

◾Gold rose to a two-month high after
holdings in the largest exchange-traded product posted the first
weekly expansion this year. Silver headed for the longest rally
since March 2008.

◾Spot gold gained as much as 0.6 percent to $1,384.55 an ounce, the highest since June 18, and traded at $1,382.45 at 10:05 a.m. in Singapore. Silver added 1.6 percent to $23.6225 an ounce, the highest since May 14, after entering a bull market last week



Equities

◾Asian stocks fell for a third day as a retreat in emerging markets dragged the
regional benchmark gauge to its lowest level in a week. Japan’s
Topix index swung from losses to gains amid low trading volumes.

◾The MSCI Asia Pacific excluding Japan Index fell 0.5 percent to 444.56 as of 12:30 p.m. in Hong Kong. Seven of the 10 industry groups on the gauge dropped. The measure has lagged an increase in U.S. stocks this year as growth slows in China and speculation that the Federal Reserve will curb U.S. bond buying spurred investors to sell assets perceived as riskier across Asia and emerging markets. The Federal Open Market Committee’s July meeting minutes are scheduled to be released on Aug. 21.

◾European stocks advanced for a third straight week as data showing the euro area emerged from the longest recession on record outweighed speculation the Federal Reserve will trim monetary stimulus.

◾The benchmark Stoxx Europe 600 Index increased 0.1 percent to 306.36 this past week, extending its 2013 advance to 9.5 percent. The Euro Stoxx 50 Index added 1 percent for a sixth week of gains. Gross domestic product in the 17-nation euro area expanded 0.3 percent in the second quarter after a six straight periods of contraction

◾U.S stocks Investors are favoring U.S. stocks over emerging markets by the most
ever as fund flows and volatility measures show institutions are
increasingly seeking the relative safety of American equities.

◾The S&P 500 slid 2.1 percent to 1,655.83 last week, paring its gain
this year to 16 percent, as data on rising retail sales, subdued
inflation and a drop in jobless claims fueled speculation the Fed will
cut monetary stimulus, known as quantitative easing. The central bank
will probably reduce the $85 billion in monthly bond purchases next
month