Wall Street continues its negative trend from last week to complete the longest sequential drops this year in anticipation for the publishing of last week’s federal bank meeting protocol. The USA bond market closed negatively and the 10 year yield on 10-year bonds rose by 0.05% to a level of 2.88%, after climbing to a level of 2.9%- its highest level since July 2011.
Summery: Investors are waiting anxiously for two major events this week: the publishing of the fed’s interest rate protocol on Wednesday and the bankers’ convention in Jackson Hall this weekend. Since speculation increased in recent months about the possibility that the central bank will start to withdraw expansionary monetary policy by September, traders are interested in whether senior Fed executives support such decision, a matter that may affect the direction of the markets. Jackson Hole Conference. – Although the chairman of the Fed decided not to attend the conference, almost all the worlds’ major banks chairmen and senior economists are expected to attend. Both candidates for replacing Bernanke, Janet Yellen and Larry Summers will also be present. During the conference, to be held between 22 to 24 August, officials are expected to discuss monetary policy and the global economy.
Apple –the consumer electronics giant’s shares have jumped more than 10% last week- the biggest weekly jump since October 2011 – and closed on Friday above the price of $ 500. The rise was recorded after billionaire investor Carl Icahn announced that had accumulated a large position in stock and estimated that the stock is trading below its real value.
Europe – UK business lobby, the CBI, raised its forecast for UK economic growth to 1.2% – twice the growth rate predicted by British finance minister George Osborne in March, and more than the previous forecast of 1% growth in 2013. The organization also raised its growth forecast and 2014 from 2% to 2.3%.
Commodity market – Crude oil dropped for the first time in seven days braking the longest sequence of gains in four months recorded after the escalation in clashes in Egypt increased fears of supply disruptions in passing through the Suez Canal. Gold retreated from a record two months, and the price of Silver – who last week had the sharpest weekly jump since 2008 – retreated from a high of three months.
