Fed's Yellen spreads optimism across equities and commodities

Wednesday, February 12, 2014

Chinese exports jumped by 10.6% in January, while imports also surged by 10%, beating analysts’ expectations. The optimistic Chinese economic data spread optimism across Asian equity markets, which posted strong gains, with the Hang Seng index climbing by 1.47% at 22285.80 points, while the Nikkei index rose sharply by 0.56% to retest the 14,800 level.  

European equity markets have extended gains this morning, tracking the strong upside momentum across the US equity markets. The Fed’s Chairwoman, Janet Yellen spread optimism yesterday regarding US economic prospects and drove equity markets higher. Yellen made it clear that she would not make any abrupt changes to the US monetary policy, saying the Federal Reserve central bank was on track to keep reducing its stimulus even though the labour market recovery was far from complete.

The Dow Jones index climbed by almost 200 points (+1.22%), while the S&P 500 index surged by 1.11%. The USD index continues to trade sideways around 80.6, remaining fairly flat against a basket of currencies.

Brent crude futures climbed higher, with the front month contact climbing toward $109 per barrel. However, Gold gave back some of its sharp overnight gains as global equity markets rallied but it was still trading near its highest level in three months.

 

Chinese Imports

China Import

 

Dow Jones Index 

Dow Jones Daily

Events for today: 

 

1000

EZ

Dec

Industrial Production

1530

US

w/e

EIA Energy Stocks

1900

US

Jan

Fed Budget

 

All times UK Local Time

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