Daily Market Review for October 31st 2013
Major Economic Data to keep an eye on:
Make sure to keep track of economic news related to your open positions.
We have a busy economic news today.
EUR – German Retail Sales (YoY+MoM) – 7:00 GMT
EUR – Gfk German Consumer Climate – 7:00 GMT
EUR – French Consumer Spending – 7:45 GMT
EUR – Core CPI (YoY) – 10:00 GMT
EUR – Unemployment Rate – 10:00 GMT
CAD – GDP (MoM) – 12:30 GMT
USD – Initial Jobless Claims – 12:30 GMT
USD – Treasury Secretary Lew Speaks – 13:00 GMT
USD – Chicago PMI – 13:45 GMT
KRW – South Korean CPI (MoM+YoY) – 23:00 GMT
October is about over
The S&P 500 registered its first decline in five sessions, losing 0.5%.
the Federal Reserve released its latest policy directive, which was little changed from prior statements. Most notably, the directive acknowledged the recent slowdown in the housing sector and noted that fiscal policy is presenting a headwind to growth. In addition, the Committee dropped the reference to “tightening financial conditions” that appeared in the September statement.
The statements has been perceived to be somewhat hawkish as the Committee did not alter its outlook to account for the impact from the partial government shutdown.
Stocks in Japan and South Korea decline after the U.S. Federal Reserve leaves its policy unchanged, while Australia manages to move higher at the end of a healthy month for regional markets.
The Fed met expectations by leaving its stimulus program unchanged at its policy meeting, though it did surprise with its upbeat assessment of the economy. Some investors were looking for the central bank to downgrade its economic outlook after the government shutdown and budget impasse earlier this month.
The Nikkei Average fell 0.1%, as the yen was steady in Asia, recently at ¥98.47 to the dollar.
The U.S. dollar was mixed against its major rivals during Thursday’s Asian session following the end of a Federal Reserve meeting that provided little in the way of surprises.
In Asian trading Thursday, EUR/USD inched down 0.01% to 1.3735.
GBP/USD nudged down 0.02% to 1.6038
USD/JPY fell 0.13% to 98.41 after the Fed did not provide a clear schedule for tapering of its USD85 billion-per-month easing program.
Gold futures trickled lower Thursday in electronic trading, failing to extend gains in the wake of the Federal Reserve’s decision to stay the course on its monetary stimulus program.
Gold for December delivery lost another $12.50, or 0.9%, to $1,336.80 an ounce. December silver, meanwhile, was hit even harder, giving up 59 cents, or 2.7%, to $22.39 an ounce.
The next big event for gold traders to keep an eye on will be next month’s Senate confirmation hearing for Janet Yellen as Fed chief. Jeffrey Wright, managing director at H.C. Wainwright, said this should be supportive for gold, considering her dovish stance on monetary policy.
Oil futures traded lower during Thursday’s Asian session following more tepid U.S. economic data and a concerning weekly inventories report.
On the New York Mercantile Exchange, crude futures for December delivery fell 0.22% to $96.56 per barrel, near a four-week low, in Asian trading Thursday. The December contract settled lower by 1.46% at $96.77 per barrel Wednesday.
Shares of Facebook Inc. surrendered a 14% after-hours gain in the extended session Wednesday during its third-quarter earnings analyst call, while Expedia Inc. shares surged as the company’s quarterly results topped consensus expectations on quarterly results. Facebook shares, which had been up as much as 14% after-hours at one point, swung to a slight loss over the course of the third-quarter earnings analyst call. Shares were down 1.7% at $48.20 in recent activity.
