Daily Market reviews
2013-05-17 Daily Market Review
Post date: 2013-05-17
Weekly Market Review: 17/05/2013
Fundamental Analysis:
The dollar rose against most of its rivals in Asian trading on Friday after Federal Reserve officials said stimulus programs may begin slowing down to a close this year. Stimulus measures, such as the Fed's monthly USD85 billion bond-buying program, weaken the Washington by flooding the economy full of liquidity to keep interest rates low and encourage investing and hiring.
Weak indicators released in the U.S. earlier had markets betting that such policies will stay in place possibly into next year to keep the economy going before it can stand on its own.
Technical Analysis-Currencies
EUR/USD
The American Dream Stays Alive
The Why: The dollar gained steam after Federal Reserve Bank of San Francisco President John Williams suggested that despite disappointing economic indicators in the U.S., monetary authorities may begin to scale back stimulus policies later this year.
Talk Back: One Word “Wow”! The U.S. as of late seems they can do no wrong. Even when economic indicators point in the wrong direction, the greenback seems to keep stable and continue to climb. The U.S. cannot rely on their “bad fortunes forever”, keep a close eye on this.
The Numbers: EUR/USD opened Friday at (1.2880) and dipped to (1.2864) continuing in to Friday’s trade.
USD/JPY
Yen losing sight of the 100 line as the U.S. dream continues.
The Why: The dollar rose against the yen on Friday after Federal Reserve officials in the U.S. earlier played down talk that monetary stimulus measures may stay in place longer than once anticipated. Officials indicate that the move will preserve strength in the U.S. economy continuing through next year.
Talk Back: The yen continues to suffer from the investor dreams of U.S. safety. If the U.S. isn’t careful and turn around the economic indicators, the dream bubble is going to pop and crash hard.
Numbers: USD/JPY opened Friday at (102.27) and Canada brought it down to (102.30) trading in to Friday.
Technical Analysis – Commodities
Gold
U.S. streets painted with…dollars?
The Why: Gold prices fell on Thursday despite the release of weak U.S. pricing, housing and regional factory data, which convinced more and more investors that the Federal Reserve will keep stimulus tools in place for longer than expected.
Talk Back: All signs should once again pointing against the U.S. dollar, but investors are keeping to their green side and ignoring everything else. Gold is now desperately trying to grab on to what was though last month as the impossible barrier, the 1,400 line.
The Numbers: Gold opened Thursday at (1391.25) and sunk to (1384.25) by Day’s end.
Oil
Oil flows against the current
The Why: Oil prices rose in U.S. trading on Thursday after a fresh wave of disappointing economic indicators in the U.S. fanned sentiments that the Federal Reserve will keep monetary stimulus programs in play for longer than once anticipated.
Talk Back: Oil seems to be the only one that benefited from strange economic situation in the U.S. There’s a good reason for it too, unlike its yellow partner, Gold, Oil is a needed and consumed commodity and hence will be used. Several factors, including warmer temperatures are calling for its demand.
The Numbers: Oil - opened Friday at (94.39) and nested in at (95.14) by the end of the day.
Technical Analysis – Stocks
Microsoft
Micro has not gone Soft!
The Why: Microsoft Corp. shares hit a new five-year high on Thursday, as growth in the company's online software business helped the stock break out of its mostly decade-long rut despite lingering concerns about lackluster demand for its latest operating system and plunging computer shipments.
Several factors have contributed to the company's sharp share gains, such as the growth and excitement in Microsoft's videogame business, the market's strong run, the company's stable cash flow, and its 2.7% dividend yield and regular stock buyback program, both popular with value investors.
Talk Back: Microsoft finally took the leap in moving to other markets other than just Windows and Office and they are finally seeing the fruits from their labor. Windows 8 sold 100 million copies, nothing to sneeze at, but the diversity is paying off as a fifth year high is exactly what the Gates legacy needs!
The Numbers: Microsoft - opened Thursday at (33.84) and nested in at (34.08) by the end of the day.
Market Watch:
For Today’s Market Watch! It’s Canada’s turn to present their CPI (cost of living) statistics. Canada hopes for better numbers than their neighbors to the south. If Canada can show a lower than expected cost of living, it may be enough to finally break the parity line with the U.S.
Numbers are being released at 8:30am Eastern Time today.
Indices
|
1649.95 |
+1.95 |
+0.12% |
|
|
3000.20 |
+1.95 |
+0.07% |
|
|
15233.22 |
-42.47 |
-0.28% |
|
|
8336.50 |
-33.37 |
-0.40% |
|
|
6671.30 |
-16.50 |
-0.25% |
|
|
15138.12 |
+100.88 |
+0.67% |
|
|
84.05 |
+0.15 |
+0.18% |