Daily Market Outlook from ACFX
September 15th, 2011
Important Financial Indicators of the day
Forecast Previous
EUR 08:00 (GMT) ECB Monthly Bulletin
GBP 08:30 (GMT) Retail Sales m/m -0.2% 0.2%
EUR 09:00 (GMT) CPI y/y 2.5% 2.5%
EUR 09:00 (GMT) Core CPI y/y 1.2% 1.2%
USD 12:30 (GMT) Core CPI m/m 0.2% 0.2%
USD 12:30 (GMT) Unemployment Claims 410K 414K
Currencies
• EUR/USD The euro declined against the dollar on concern that the risk of a Greek default is increasing borrowing costs for other European countries and before Spain has a debt auction today.
o Spain will today sell as much as 4 billion euros ($5.5 billion) of bonds maturing in 2019 and 2020.
o The euro fell to $1.3708 as of 1:57 p.m. in Tokyo from $1.3755 yesterday in New York.
• USD/JPY The Japanese currency rose versus most of its major peers as Asian stocks pared earlier gains.
o The dollar was trading at 76.697 yen around 7 a.m. London time.
• USD/CAD Canada’s dollar fell as oil and copper dropped and as U.S. retail sales unexpectedly declined in August.
o Canada ships about three-quarters of its exports to the U.S., including almost all of its crude oil.
o The Canadian dollar depreciated 0.4 percent to 98.93 cents per U.S. dollar at 5 p.m. in Toronto, compared with 98.57 cents yesterday.
Commodities
• Gold fell as the prospect of financial support from China eased concern that the European debt crisis will worsen, eroding demand for the metal as a haven.
o Gold futures for December delivery fell $3.60, or 0.2 percent, to settle at $1,826.50 an ounce at 1:59 p.m. on the Comex in New York.
• Oil dropped as investors bet that increasing U.S. fuel stockpiles and signs of a weakening economy indicate demand will decrease.
o An Energy Department report yesterday showed gasoline supplies rose 1.94 million barrels last week.
o Crude for October delivery decreased as much as 59 cents to $88.32 a barrel in electronic trading on the New York Mercantile Exchange and was at $88.59 at 2:31 p.m. Sydney time.
Equities
• U.S. stock rose as French President Nicolas Sarkozy and German Chancellor Angela Merkel said they are convinced Greece will remain in the euro zone.
o General Electric Co. (GE), Home Depot Inc. (HD) and Monsanto Co. (MON) rose at least 2.4 percent.
o The S&P 500 gained 1.4 percent to 1,188.68 at 4 p.m. New York time.
o The Dow Jones Industrial Average rose 140.88 points, or 1.3 percent, to 11,246.73.
• European stock stocks swung between gains and losses as bank shares reversed their earlier losses.
o BNP Paribas (BNP) lost 3.3 percent while Cairn Energy Plc sank 10 percent.
o The U.K.’s FTSE 100 gained 1 percent.
o Germany’s DAX advanced 3.4 percent and France’s CAC 40 climbed 1.9 percent.
• Asian stocks climbed after German Chancellor Angela Merkel said Greece will stay in the euro zone.
o Westpac Banking Corp. gained 1.7 percent in Sydney.
o The MSCI Asia Pacific Index gained 0.8 percent to 117.21 as of 2:30 p.m. in Tokyo.
o Japan’s Nikkei 225 Stock Average climbed 1.6 percent.
o Hong Kong’s Hang Seng Index and China’s Shanghai Composite Index were little changed.