Fed's Yellen comments spread optimism

Thursday, April 17, 2014

In the US, the Dow Jones index climbed further on Wednesday, ending 162.3 points higher (+1.0%), while the S&P 500 and the Nasdaq have also extended gains by 1.05% and 1.29%, respectively.

The US Beige Book reported solid growth in most regions of the US economy, spreading an optimistic tone across the equity and commodity markets. The Fed’s Chair Yellen remained fairly worried over the US employment market conditions following her comments that the pace of recovery has remained exceptionally slow. However, Yellen was more optimistic surrounding the overall US economic outlook and promised to watch all indicators and respond as appropriately.  

Dow Jones Index over 2 Years

INDU Index (Dow Jones Industrial 2014-04-17 09-00-05

European equity markets have been consolidating within the recent range early today, as fairly disappointing earnings results from Google and IBM weighed slightly on market sentiment. The euro has extended gains against the US dollar, trading above 1.385. German producer prices fell slightly by 0.3% in March.

Brent front month futures continue their uptrend, holding above $109.5 per barrel, as on-going tensions in Ukraine provide further support to the oil market. The WTI front month contract has also climbed higher towards $104.5 per barrel, despite the bearish EIA oil inventories report which showed yesterday an unexpected jump of 10.0 million barrels in the US oil inventories.

Gold has been consolidating around $1,300 per ounce, supported by uncertainty in Ukraine. However, as the world’s biggest gold fund saw its sharpest outflow in nearly four months; the precious metal could be possibly at risk of potential losses in the short-term.   

WTI Front Month Contract

CL1 Comdty (Generic 1st 'CL' Fut 2014-04-17 09-00-40



Happy Easter!!!

Events for today:





Producer Prices




Jobless Claims




Philly Fed Business Index




EIA Nat Gas


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