FTSE 100 ends the week at a new record closing high – Binary Options Daily Review

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Monday 20th March 2017
Prepared by Barry Jenkins, MarketsWorld Binary Options Analyst

 
Market Index Closing Level Move on day Intraday Market Range
CAC 5,029.24 + 15.86 5,001.39 – 5,037.85
DAX 12,095.24 + 12.06 12,018.30 – 12,117.90
Dow Jones 20,914.62 – 19.93 20,911.10 – 20,980.50
FTSE 7,424.96 + 9.01 7,402.64 – 7,447.00
IBEX 10,245.80 + 77.80 10,143.90 – 10,250.20

Closing Markets Summary

Dow Jones

Stocks in the U.S closed slightly lower on Friday but still posted gains for week as investors continued to digest the rate rise by the Federal Reserve on Wednesday and as they looked for the next market moving news. Trading was calm despite the so-called quadruple witching, as stock-index futures, stock-index options, stock options and individual stock futures all expired on the same day. President Trump ended his first official meeting with German Chancellor Angela Merkel without any market-moving developments. Following the summit, Trump expressed confidence in the US-German relationship and reiterated his desire for more equitable trade with the country while Merkel kept her comments neutral but stressed that the US must keep its commitments. Germany is one of several countries Trump has accused of having an unfair trade advantage. Economic data showed that industrial production was flat in February, below forecasts for a rise of 0.3%. Preliminary consumer sentiment rose to 97.6 in March from 96.3 in February, based on a reading by the University Michigan, slightly below the reading of 98 that had been forecast. The Conference Board reported that its leading economic index rose 0.6% in February to reach its highest level in more than a decade. Companies that featured included Adobe Systems Inc. which climbed 3.8% after the software company late Thursday reported better than forecast quarterly profit and sales. Amgen was down 6.4% and was the largest drag on both the S&P 500 and Nasdaq after the extent of a cholesterol drugs benefits in a highly anticipated study disappointed investors. Tiffany & Co. rose 2.7% after it reported better than forecast earnings and gave an upbeat outlook. The Dow Jones closed down 19.93 points at 20,914.62, the S&P 500 closed down 3.13 points at 2,378.25 and the Nasdaq Composite closed up 0.24 of a point at 5,901.00.

Europe

European equity markets ended slightly higher on Friday as investors eyed a meeting of G20 finance ministers, while the Euro dipped following fresh gains made overnight. The Pan-European Stoxx Europe 600 index closed up 0.16% at 378.32, for a gain of 1.28% on the week. The Euro was boosted by the Dutch election, which reduced political uncertainty on the continent before France and Germany held their own elections, but the currency failed to extend those gains on Friday. The Euro was down 0.19% against the Dollar to 1.0752 and 0.39% lower versus the Pound to 0.8676. Brent crude was up 0.06% at $51.77 per barrel and West Texas Intermediate was up 0.10% at $48.80. Economic data showed that the Eurozone trade surplus fell sharply to €15.7bn in January from a revised €23.1bn in December, well below the €22bn that was forecast. Eurozone construction output fell 2.3% month-to-month in January, while year-on-year output slipped by -6% after a revised +3% in December. Companies that featured included Tullow Oil will fell 14.75% after China’s largest oil company triggered its option to acquire the rest of its interest in Ugandan oil exploration licences. Prudential rose 0.40% after being upgraded to ‘neutral’ by JP Morgan Cazenove. Airbus edged up 0.71% after French authorities began a preliminary probe into possible irregularities involving third-party agents to gain jetliner contracts. Italian energy utility Enel dipped 0.94% after posting a drop in sales, although income rose. On regional markets the CAC closed up 15.86 points at 5,029.24, the DAX closed up 12.06 points at 12,095.24 and the IBEX closed up 77.80 points at 10,245.80.

FTSE

The FTSE closed slightly higher on Friday to close at a second consecutive record closing high, as focus turned to the Group of 20 meeting of finance chiefs in Germany. Oil and gas, telecom and consumer-goods sectors led the advance, but those moves were nearly offset by losses in financial, health-care and utility shares. Investors moved with caution Friday as the G-20 meeting of finance ministers and central bankers from the world’s largest economies kicked off in the German spa town of Baden-Baden. The Pound moved higher against the Dollar up 0.28% at $1.2387, up from $1.2361 late Thursday in New York. The UK currency recaptured the $1.23 handle on Thursday after the Bank of England showed a slightly hawkish tone, as one of its nine board members voted to raise the benchmark rate to 0.25%. Companies that featured included Panmure Gordon & Co. PLC which jumped up 65% to 98 pence after the stockbroker accepted a £15.5 million cash buyout offer from former Barclays PLC Chief Executive Bob Diamond and a Qatari investment group. Miners closed mixed on Friday after healthy gains on Thursday with Fresnillo PLC up 0.1%, reversing earlier losses to keep a six-session winning streak alive. But fellow precious metals producer Randgold Resources PLC ended lower by 0.4%. Insurer Admiral Group PLC and ConvaTec Group which makes dressings to cover wounds, topped the index as shares of both closed up 1.9%. The FTSE closed up 9.01 points at 7,424.96 for a rise of 1.1% on the week.

Economic News Expected Today

 USA

Type Period Forecast Previous Importance
Chicago Fed National Activity Feb   -0.05 Low

Economic News Expected Today

EU  Eurozone

Type Period Forecast Previous Importance
PPI (Germany) Feb 0.3% m/m; 3.2% y/y 0.7% m/m; 2.4% y/y Medium
Wages in Eurozone) Q4   1.60% y/y Medium
Labour Cost Index (Eurozone) Q4   1.50% Low
Bundesbank Monthly Report (Germany) March     High
Jens Weidmann Speaks (Germany) March     High

Economic News Expected Today

UK United Kingdom

Type Period Forecast Previous Importance
Rightmove House Price Index March   2.0% m/m Medium

Other Global Economic Data Expected

 

Type Period Forecast Previous Importance
Wholesale Sales (Canada) Jan 0.4% m/m 0.7% m/m Medium
CB Leading Index (Australia) March   -0.1% m/m Low
RBA Meeting Minutes (Australia) March     High

Economic News Round Up MarketsWorld Bars

US industrial production remained unchanged last month, the Federal Reserve reported that industrial production remained unchanged at 0.0%, from -0.1% in the previous month whose figure was revised up from -0.3%. Industrial production was forecast to rise 0.2% last month. US factory output increased for a sixth straight month in February as rising commodity prices boosted demand for machinery and other equipment.The Federal Reserve reported that manufacturing production rose 0.5 percent last month. January’s output was revised up to show a 0.5 percent gain instead of the previously reported 0.2 percent increase. US consumer sentiment rose more than forecast in March, the preliminary publication of the data for March from the University of Michigan’s Consumer Survey Center showed that consumer sentiment rose to 97.6 from 95.7 in the previous month. Forecasts were for an increase to only 97.0. The current conditions indicator increased to 114.5 in March from the prior month’s reading of 111.3. Forecasts were for a slip to 111.0. Consumer expectations increased to 86.7 in March, from the prior reading of 85.7. Forecasts were for a decline to 85.5. The Conference Board leading economic index for the US rose more than forecast last month. The Conference Board Inc. reported that the US CB leading index rose to a seasonally adjusted annual rate of 0.6%, from 0.6% in the previous month. The US CB leading index was forecast to rise 0.4% last month.

The Eurozone recorded in January a trade deficit for the first time in three years as a rise in exports from a year earlier was more than offset by a larger increase of imports, Eurostat reported that the 19-country currency area recorded a 0.6 billion Euro deficit in January in its trade balance with states outside the bloc. Eurozone exports grew by 13 percent in January on the year to 163.9 billion euros, but the rise was counterbalanced by a 17 percent increase of imports, which totalled 164.5 billion euros, unadjusted figures showed. Over the whole of last year, Eurozone exports to the rest of the world were stable at a volume of around 2 trillion euros. Imports went down 2 percent from 2015, while trade among Eurozone countries was up 1 percent to a volume of 1.7 trillion euros.

Italy’s trade balance fell more than forecast last month, Istat reported that the Italian trade balance fell to a seasonally adjusted -0.570B, from 5.730B in the previous month whose figure was revised down from 5.800B. The Italian trade balance was forecast to fall to 3.450B last month.

Canadian manufacturing sales rose last month, Statistics Canada reported that Canadian manufacturing sales rose to a seasonally adjusted 0.6%, from 2.3% in the previous month. Canadian manufacturing sales were forecast to fall -0.2% last month.

Forex Round Up MarketsWorld Bars

The Dollar was slightly higher against the other major currencies on Friday but remained near five-week lows after the release of mixed US data. In a preliminary report, the University of Michigan reported that its consumer sentiment index rose to 97.6 in March from 95.7 the previous month, compared to forecasts for an increase to 97.0. US industrial production was flat in February, compared to forecasts for a 0.2% rise. Industrial production slipped 0.1% in January, whose figure was revised from a previously estimated 0.3% decline. Manufacturing production rose 0.5% last month, exceeding forecasts for a 0.5% increase.

The EUR/USD was down 0.29% at $1.0735, just off a five-week high of 1.0783 hit overnight. The GBP/USD was steady at $1.2364, off an earlier two-week high of 1.2399. The USD/JPY was down 0.64% at ¥112.58 and the USD/CHF was up 0.17% at Fr0.9981.

The Australian and New Zealand dollars were both firmer with the AUD/USD up 0.23% at $0.7694 and the NZD/USD was up 0.30% at $0.7007. The USD/CAD was up 0.38% at CAD$1.3367, off Thursday’s two-week low of CAD$1.3274. The US Dollar Index was up 0.11% at 100.19, still close to a five-week low of 99.97 hit earlier in the day.

 
Commodity Round Up MarketsWorld Bars

Gold prices settled higher on Friday to register a gain of about 2.4% for the week. Declines in the Dollar in the wake of the Federal Reserve’s cautious stance to future interest-rate hikes gave prices a boost. April gold rose $3.10 to settle at $1,230.20 per ounce. Silver for May delivery rose $0.083 to settle at $17.413 per ounce, for a weekly gain of 2.9%.

Crude settled higher on Friday, as investors shrugged off concerns about high levels of US crude inventories while the number of active US drilling rigs rose for a ninth straight week. Oilfield services firm Barker Hughes reported its weekly US rig count rose by 14 to 631, the ninth straight weekly increase. West Texas Intermediate futures for May delivery gained $0.03 to settle at $48.78 per barrel, while Brent added $0.03 cents to settle at $51.77 per barrel.

The MarketsWorld Overview MarketsWorld Bars

Jens Weidmann the president of the German central bank speaks in Loerrach and his speech will garner more interest this time. The market will be listening closely to see if repeats Nowotny’s words from last week about the possibility of raising the deposit rate before ending quantitative easing. Monitor the Euro for Binary Options trading.

 

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The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any opinion offered herein reflects Barry Jenkins’ (MarketsWorld Analyst) current judgment and may change without notice. Users acknowledge and agree to the fact that, by its very nature, any investment in shares, stock options and similar and assimilated products is characterized by a certain degree of uncertainty and that, consequently, any investment of this nature involves risks for which the user is solely responsible and liable. This message is intended for recipient only and not for further distribution without the consent of MarketsWorld.

 

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