U.S. markets were mostly higher yesterday as the Dow Jones set another record close. There is a lot of optimism among investors that the Federal Reserve would continue to buy bonds at its tremendous $85 billon a month for longer than most have thought. These feelings are coming ahead of a GDP and NFP release, which could come in weaker than expected.
There is also talk that the Fed will leave policy the same as unemployment remains well above their target 6.5 percent and inflation remains below the target 2.5 percent. So the target interest rate should remain close to zero.
Asian markets are mostly lower today, as they failed to track the U.S. gains overnight. Investors are choosing caution ahead of the European Central Bank (ECB) today.
STOCKS
At the start of trading in the U.S., the DJIA saw a triple digit increase to 15,750.92. This was an intraday record. The Blue Chip Index easily added 128.66 points to close at 15,746.88. This was a new record close which we saw last Tuesday at 15,680.35.
The S&P 500 gained 7.52 points to finish less than 2 points from its record high. The index closed at 1,770.49. The Nasdaq Composite, bucked the winning trend, as it erased early gains to finish nearly eight points lower at 3,931.95.
The Nikkei is down 0.4 percent at 14,285.57 as a weakening yen is hurting exporters like Toyota Motors which fell one percent on the day. The Shanghai Composite is 0.3 percent lower after investors got wind the People bank of China (PBOC) will not participate in open-market operations today. Investors are also nervous as the Communist Party is ready to begin its policy meeting and economic data set to be released on Friday.
In Australia, the ASX 200, continued to fall as it is down nearly 24 points at 5,410.10. Weaker than expected jobs data which showed a mere 1,100 jobs were added to the economy in October. The AUD also lost against the U.S. Dollar falling 0.50 percent.
The South Korean Kospi has now hit a one month low dragged down by Samsung Electronics which added another one percent loss to yesterday’s 2.3 percent falloff.
CURRENCIES
This will be a big day for both the Euro and the Dollar as the ECB will release its policy decisions later in the day.
EUR/USD (1.3520) has recovered with great vigor from 1.3450. If we stay above 1.3480 then we can target 1.35 them 1.3550. We do see strong resistance at 1.3524.
The U.S. Dollar Index (80.46) has been moving lower again. We need to climb above 80.70 to relieve bearish pressures. We have support at 80.35 which needs to be watched. If that breaks we will target 80.00.
USD/JPY (98.634) is coming on to selling pressure n ear 98.85. We need to break above 99.00 for a rally. If we fail and fall below 98.48 then we turn bearish for 97.80.
COMMODITIES
Metals are tracking sideways, but crude oil continues to see selling pressure.
Brent WTI (104.96) has fallen below the support at 105.00. We are now bearish to target 103.00.
Gold (1317.00) is moving sideways however, while below 1345 we are bearish and could fall to 1300 then 1280. Copper (3.246) is also tracking sideways despite its fall below 3.25.
COMMODITIES
All eyes are on Europe today as the bank of England and the ECB are meeting today. Later today, we will get the U.S. Q3 GDP result. Tomorrow, the non-farm payroll (NFP) number is announced.
There is also talk that the Fed will leave policy the same as unemployment remains well above their target 6.5 percent and inflation remains below the target 2.5 percent. So the target interest rate should remain close to zero.
Asian markets are mostly lower today, as they failed to track the U.S. gains overnight. Investors are choosing caution ahead of the European Central Bank (ECB) today.
STOCKS
At the start of trading in the U.S., the DJIA saw a triple digit increase to 15,750.92. This was an intraday record. The Blue Chip Index easily added 128.66 points to close at 15,746.88. This was a new record close which we saw last Tuesday at 15,680.35.
The S&P 500 gained 7.52 points to finish less than 2 points from its record high. The index closed at 1,770.49. The Nasdaq Composite, bucked the winning trend, as it erased early gains to finish nearly eight points lower at 3,931.95.
The Nikkei is down 0.4 percent at 14,285.57 as a weakening yen is hurting exporters like Toyota Motors which fell one percent on the day. The Shanghai Composite is 0.3 percent lower after investors got wind the People bank of China (PBOC) will not participate in open-market operations today. Investors are also nervous as the Communist Party is ready to begin its policy meeting and economic data set to be released on Friday.
In Australia, the ASX 200, continued to fall as it is down nearly 24 points at 5,410.10. Weaker than expected jobs data which showed a mere 1,100 jobs were added to the economy in October. The AUD also lost against the U.S. Dollar falling 0.50 percent.
The South Korean Kospi has now hit a one month low dragged down by Samsung Electronics which added another one percent loss to yesterday’s 2.3 percent falloff.
CURRENCIES
This will be a big day for both the Euro and the Dollar as the ECB will release its policy decisions later in the day.
EUR/USD (1.3520) has recovered with great vigor from 1.3450. If we stay above 1.3480 then we can target 1.35 them 1.3550. We do see strong resistance at 1.3524.
The U.S. Dollar Index (80.46) has been moving lower again. We need to climb above 80.70 to relieve bearish pressures. We have support at 80.35 which needs to be watched. If that breaks we will target 80.00.
USD/JPY (98.634) is coming on to selling pressure n ear 98.85. We need to break above 99.00 for a rally. If we fail and fall below 98.48 then we turn bearish for 97.80.
COMMODITIES
Metals are tracking sideways, but crude oil continues to see selling pressure.
Brent WTI (104.96) has fallen below the support at 105.00. We are now bearish to target 103.00.
Gold (1317.00) is moving sideways however, while below 1345 we are bearish and could fall to 1300 then 1280. Copper (3.246) is also tracking sideways despite its fall below 3.25.
COMMODITIES
All eyes are on Europe today as the bank of England and the ECB are meeting today. Later today, we will get the U.S. Q3 GDP result. Tomorrow, the non-farm payroll (NFP) number is announced.