Gold at 5 week high as Dollar weakens – Binary Options Daily Review

Published by Leave your thoughts Print

 

MarketsWorld
Markets Report

Global Markets

trade

Friday 6th January 2017
Prepared by Barry Jenkins, MarketsWorld Binary Options Analyst

 
Market Index Closing Level Move on day Intraday Market Range
CAC 4,900.64 + 1.24 4,874.79 – 4,905.84
DAX 11,584.94 + 0.63 11,537.40 – 11,602.50
Dow Jones 19,899.29 – 42.87 19,811.10 – 19,948.60
FTSE 7,195.31 + 5.57 7,172.77 – 7,211.96
IBEX 9,488.20 + 25.30 9,413.60 – 9,507.20

Closing Markets Summary

Dow Jones

Stocks in the US closed mixed on Thursday with losses in financials and retailers weighing on the Dow and the S&P, whilst the Nasdaq closed at an all time high. Mixed data on jobs also raised concerns a day before the closely watched December employment report due Friday. There are signs that the recent rally which has propelled stocks to recent highs following the Trump election win is beginning fade with worries growing that equity valuations are getting ahead of fundamentals, notably earnings growth. In economic news two reports on the labour market pointed to mixed conditions. The private sector added 153,000 jobs in December, according to ADP, a rate that was below forecasts, while first-time jobless claims fell 28,000 in the latest week, dropping to a nearly 43-year low. The reports gave little clarity on what investors could expect with Friday’s closely watched December jobs report. The US services sector held steady at a 12-month high in December, suggesting growth in non-manufacturing activity, mainly the service sector, remains strong. Companies that featured included retailers L Brands, Nordstrom Inc, Signet Jewellers Ltd, Kohl’s Corp. and Macy’s Inc. were all lower after disappointing holiday sales and news that Macy’s was closing stores and laying off staff. CEB Inc. rose 21% after Gartner Inc. announced it would buy the company in a cash-and-stock deal valued at about $2.6 billion, Gartner shares finished down 11%. Shares of Nvidia Corp. was lower after news late Wednesday that the chip maker is joining with Audi AG to bring a fully self-driving car to the market. The Nasdaq Composite closed up 10.93 points at 5,487.94, narrowly beating the previous record. The Dow Jones closed down 42.87 points at 19,899.29 and the S&P 500 closed down 1.75 points at 2,269.00.

Europe

European equity markets closed little changed for a second day as investors as investors looked ahead to the release of the important monthly US jobs report due out on Friday and with trading volumes still low following the Christmas break. The Pan-European Stoxx Europe 600 index rose 0.10% to close at 365.64. Oil prices were close to their lows of the day at the close of the equity markets with West Texas Intermediate down 0.53% to $52.98 per barrel and Brent crude 0.43% higher at $56.22. Minutes released from the latest Federal Reserve meeting released on Wednesday showed that several committee members believed the current policy path of gradual rate increases was not likely to be appropriate due to the possibility that Trump and a Republican-controlled Congress will push through policies to stimulate the economy further, such as tax cuts, infrastructure spending and regulatory loosening. Economic data showed that the Eurozone’s producer price index came in at 0.3% month-on-month in November, down from the previous month’s figure of 0.8%, but higher than the 0.1% that was forecast. Factory prices rose year-on-year for the first time since mid-2013, after three and a half years of decline, reflecting rising inflationary pressures in the bloc. Companies that featured included Deutsche Bank which was lower after agreeing to pay $95m to resolve a US government lawsuit accusing the bank of tax fraud. Tullow Oil was lower after it announced that its chief financial officer Ian Springett was taking an extended leave of absence in order to undergo treatment for a medical condition. The group said Les Wood, vice president finance and commercial, has been appointed interim CFO. Air Liquide moved up after reporting that it has agreed to buy Serdex, a unit of Bayer that makes natural ingredients for cosmetics, for an undisclosed sum. Rolls-Royce was lower after JP Morgan Cazenove cut its price target on the stock. On regional markets the CAC closed up 1.24 points at 4,900.64, the DAX closed up 0.63 of a point at 11,584.94 and the IBEX closed up 25.30 points at 9,488.30.

FTSE

The FTSE reached a new all-time intra-day high of 7,211.96 on Thursday as house builders rallied on the back of an upbeat trading statement from Persimmon, however the index slipped from its highs following disappointing US jobs data. Oil prices were close to their lows of the day at the close of the equity market with West Texas Intermediate down 0.53% to $52.98 per barrel and Brent crude 0.43% higher at $56.22. Economic data showed that the UK services sector improved in December, with growth accelerating for the third month in a row to a 17-month high. The Markit/CIPS services PMI rose to 56.2 from 55.2 in November, beating forecasts for a drop to 54.7. Companies that featured included Persimmon which was the top riser on the FTSE after it said its private sales rate tailed off towards the end of the year but the value of its forward sales has jumped as it enters 2017. The house builder reported that its revenues for calendar 2016 of £3.14bn were 8% ahead of the previous year, with average selling prices climbing 4% though the rate of annual sales growth for the second half slowed to 15% from the 19% announced in early November. Sector peers Taylor Wimpey, Barratt Developments and Crest Nicholson were all boosted by the news. G4S moved higher after Jefferies upgraded the security services company to ‘hold’ from ‘underperform’ and raised the target price to 235p from 160p. RSA Insurance Group’s were lower after JP Morgan lowered its rating on the stock to ‘neutral’ from ‘overweight’, as part of the investment bank’s look at the European insurance sector, where it pointed out the attractive dividend yields, well underpinned by strong free cash flow, though RSA had already gained more than a third last year. Fellow insurers Legal & General and Prudential were also lower on the back of fall. Rolls-Royce fell after JP Morgan cut its target price to 730p from 890p and reiterated a ‘neutral’ stance amid troubles with the engines it supplies for Airbus’s A380. The FTSE closed up 5.57 points at 7,195.31.

Economic News Expected Today

 USA

Type Period Forecast   Importance
Nonfarm Payrolls Dec 176K 178K High
Participation Rate Dec   62.7% Medium
Government Payrolls Dec 7.0K 22.0K Low
Average Hourly Earnings Dec 0.3% m/m -0.1% m/m Medium
Average Weekly Hours Dec 34.4 34.4 Low
Manufacturing Payrolls Dec 0.0K -4.0K Low
Private Nonfarm Payrolls Dec 170K 156K Medium
Trade Balance Nov -$42.50bln -$42.60bln Medium
Unemployment Rate Dec 4.7% 4.6% High
Factory Orders Nov -2.2% m/m 2.7% m/m Medium
Chicago Fed President Evans Speaks Jan     Low
FOMC Member Lacker Speaks Jan     Medium

Economic News Expected Today

EU  Eurozone

Type Period Forecast Previous Importance
Factory Orders (Germany) Nov -2.3% m/m 4.9% m/m Medium
Retail Sales (Germany) Nov -0.6% m/m; 1.2% y/y 2.4% m/m; 1.0% y/y Medium
Trade Balance (France) Nov -€4.9bln -€5.2bln Low
Business and Consumer Survey (Eurozone) Dec 106.8 106.5 Low
Business Climate (Eurozone) Dec 0.4 0.4 Low
Consumer Confidence (Eurozone) Dec -5.0 -5.1 Low
Retail Sales (Eurozone) Nov -0.4% m/m 1.1% m/m; 2.4% y/y Medium

Economic News Expected Today

UK United Kingdom

Type Period Forecast Previous Importance
No Data        

Other Global Economic Data Expected

 

Type Period Forecast Previous Importance
Employment Change (Canada) Dec -5.0K 10.7K High
Partime Employment Change (Canada) Dec   19.4K Low
Participation Rate (Canada) Dec   65.6% Medium
Unemployment Rate (Canada) Dec 6.9% 6.8% Medium
Trade Balance (Canada) Nov -CAD$1.60bln -CAD$1.13bln Medium
Ivey PMI (Canada) Dec   56.8 High

Economic News Round Up MarketsWorld Bars

The number of people who filed for unemployment assistance in the US last week fell more than forecast, the US Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending December 31 decreased by 28,000 to a seasonally adjusted 235,000 from the previous week’s total of 263,000 which was revised from an initial reading of 265,000. Jobless claims were forecast to fall by 5,000 to 260,000 last week. Continuing jobless claims in the week ended December 24 rose to 2.112 million from 2.096 million in the previous week, which was revised from 2.102 million. Continuing claims were forecast to decrease to 2.051 million. The four week moving average was 256,750, a 5,750 decrease from the previous week’s 262,500 (initially 263,000). US non-farm private employment rose less than forecast in December, payroll processing firm ADP reported that non-farm private employment rose by a seasonally adjusted 153,000 last month, below forecasts for an increase of 170,000. Service sector activity in the US remained steady at a previous 13-month high in December, the Institute of Supply Management reported that its non-manufacturing PMI remained unchanged at 57.2 in December. Forecasts were for the index to decrease to 56.6.

Eurozone producer price inflation rose more than forecast last month, Eurostat reported that Eurozone PPI rose to a seasonally adjusted 0.3%, from 0.8% in the previous month. Eurozone PPI was forecast to rise 0.1% last month.

Activity in the UK service sector rose to a 17 month high in December, Markit reported that their seasonally adjusted Markit/CIPS services PMI rose to 56.2 last month from a reading of 55.2 in November. Forecasts were for the index to fall to 54.7.

Consumer price inflation in Switzerland fell last month, the Swiss Federal Statistical Office reported that Swiss consumer price inflation fell to a seasonally adjusted -0.1%, from -0.2% in the previous month. Swiss consumer price inflation was forecast to fall -0.1% last month.

Canada’s raw material price index fell more than forecast last month, Statistics Canada reported that Canada’s raw material price index fell to -2.0%, from 3.3% in the previous month. The Index was forecast to fall -1.5% last month. The industrial product price index rose to 0.3%, from 0.7% in the previous month. Forecasts were for the industrial product price index to rise 0.2% last month.

Activity in Japan’s services sector expanded in December at the fastest pace in 11 months, the Markit/Nikkei Japan services PMI rose to a seasonally adjusted 52.3 in December from 51.8 in November.

 
Forex Round Up MarketsWorld Bars

The Dollar was lower against a basket of the other major currencies on Thursday after Federal Reserve minutes that pointed to uncertainty over the potential impact of the incoming Trump administration’s policies on the economy. Economic data showed that initial jobless claims fell by 27,500 to 235,000, an almost 43 year low. In another report the US private sector added 153,000 jobs in December, below forecasts for a gain of 170,000.

The Euro was higher, with EUR/USD up 1.07% to $1.0600, extending its recovery from the 14-year trough of $1.0339 set on Monday. The Dollar was sharply lower against the Yen, with USD/JPY down 1.49% at ¥115.50. The Pound was higher against the Dollar with GBP/USD up 0.75% at $1.2414. The Pound found some support after data showing that growth in the dominant UK service sector accelerated for a third straight month to a 17-month high in December. The Australian dollar touched two-week highs after data showing that activity in China’s services sector rose to a 17-month high last month, the AUD/USD was up 0.87% at $0.7345. The US Dollar Index was down 1.00% at 101.47.

 
Commodity Round Up MarketsWorld Bars

Gold prices ended solidly higher on Thursday, boosted by a sharply lower US dollar index and some new uncertainty injected into the marketplace following Wednesday’s minutes from the Federal Reserve’s Open Market Committee. February gold was up $16.20 per ounce at $1,181.50. March silver was up $0.058 at $16.60 per ounce.

Crude oil futures rose for a second straight session on Thursday to finish at a one-week high as investors wrestled with US government data that revealed a drop in weekly crude supplies, but a larger-than-hoped jump in stockpiles of gasoline and distillates. February West Texas Intermediate crude moved up by $0.50 to settle at $53.76 per barrel. March Brent crude rose $0.43 to $56.89 per barrel.

The MarketsWorld Overview MarketsWorld Bars

The US employment market logged a strong jobs gain in November, reducing the unemployment rate to a nine-year low of 4.6%. The US economy created 178,000 backing the Fed’s decision to raise rates on its December meeting. Forecasts were for a job growth of 177,000 with the unemployment rate unchanged at 4.9%. The decline in the unemployment rate was not related exclusively to the rise in employment but also because the labor force contracted to 62.7%. Wage growth registered a 0.1% drop but this was partially blamed on the drop in average hourly earnings on a miscalculation relating to the calendar. Many believe that Trump’s plan to increase infrastructure spending and cut taxes could boost hiring and spur faster economic growth over the coming years. December’s job gain is forecast at 176,000 and the unemployment rate is forecasted to rise to 4.7%. Monitor the Dollar for Binary Options trading.

 

Facebook Twitter Google +
graph

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.

 
Copyright 2011 – 2017 MarketsWorld

MarketsWorld
trade forex


Categorised in: Uncategorized

Written by Barry Jenkins

Leave a Reply

Your email address will not be published. Required fields are marked *