European Union expands sanctions against Russian individuals and companies

Wednesday, July 30, 2014

Asian equity markets extended gains for a third consecutive session. The Hang Seng Index jumped more than 200 points (0.85%) towards 24900. The Nikkei held above 15,600, gaining near 0.2%, as disappointing Japanese economic data weighed slightly on market sentiment and limited any sharp gains. Japan’s industrial output fell by 3.3% in June, missing analysts’ expectations of a -1.2% decrease.  

Hang Seng Index

HSI Index (Hong Kong Hang Seng I 2014-07-30 09-01-58

The US equity markets slid lower yesterday as investors remained cautious ahead of the US Fed meeting today. Both Dow Jones and S&P 500 retreated by 0.4%. The U.S. Federal Reserve seems certain to go forward with its initial plan to reduce its bond-buying stimulus, and could offer some vague ideas on how much closer it might be to finally raising interest rates.

Dow Jones Index

INDU Index (Dow Jones Industrial 2014-07-30 09-02-37

The USD index held strongly above 81.2, adding some pressure to markets. The release of the US GDP Advance data for Q2 2014 as well as ADP National Employment data will draw market’s attention, while the main focus will remain on the US Fed announcement later this evening. 

European Union expanded sanctions against Russian individuals and companies yesterday, adopting a range of fresh economic sanctions. Furthermore, US in coordination with Europe will “implement additional measures” against Russia this week, the White House reported yesterday. In addition, the US Secretary of State John Kerry said that “there is not a ‘shred of evidence’ that Russia wants to end the violence in Ukraine”.

Energy: Brent front month futures ended slightly higher on Tuesday as renewed sanctions on Russia suggest a deterioration of relations between Moscow and the West, while US prices declined after a Kansas refinery fire curbed demand for WTI crude.

WTI Front Month contract

CL1 Comdty (Generic 1st 'CL' Fut 2014-07-30 09-19-34

Sugar: ICE sugar prices hit a five-month low on Tuesday falling more than 1.8% to end the session at $16.62, as concerns about crops in Brazil eased. ICE Cocoa hovered near a three year high at $3177.

Sugar Oct14 Contract hit a 5-month low

SBV4 Comdty (SUGAR #11 (WORLD) O 2014-07-30 09-03-35

Cocoa hovered near a 3-year high

CCU4 Comdty (COCOA FUTURE      S 2014-07-30 09-03-57

Events for today:

 

1000

EZ

Jul

Bus Climate & Con Sentiment

1300

DE

Jul

CPI Preliminary

1315

US

Jul

ADP National Employment

1330

US

Q2

GDP & Personal consumption

1530

US

w/e

EIA Energy Stocks

1900

US

Jul

Fed Rate

 

All times UK Local Time

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