Key macroeconomic data will set the tone for the day

Thursday, February 27, 2014

Following the robust US home sales data yesterday, the US dollar rallied strongly with the USD index trading near a two-week high. The US equity markets posted modest gains yesterday, as profit taking emerged following the recent record high levels. The Dow Jones gained 0.12%, while the S&P 500 Index finished fairly flat on the day. Today, it is a busy day on the US macroeconomic front with the main focus turning to the release of the weekly jobless claims, durable goods and KC Fed manufacturing index, which could provide a better outlook regarding the US economic conditions.  

Asian equity markets ended fairly mixed amid concerns about escalating tensions in Ukraine. The Nikkei index fell by 0.32%, while the Hang Seng index posted strong gains, finishing 1.74% higher.

European equity markets have been trading sideways in early trading this morning ahead of the German CPI and unemployment data and Eurozone’s business climate consumer confidence. The euro reversed and slid lower, trading near 1.36 against the US dollar.

 

Commodities: front month Brent crude futures slipped towards $109 per barrel amid concerns that an easing of the freezing weather conditions in the United States could decrease demand for heating fuels. It should be noted that the recent cold weather in the US northeast has provided strong support to the oil market during the last few months.  

LME copper retreated to its lowest level in 12 weeks to retest the 7025 area, amid on-going concerns over emerging markets.

Gold extended losses after the previous session's volatile trading, with a slow physical sector suggesting that jewellers and investors were waiting for prices to drop further from four-month highs.

Dow Jones Daily Chart- 2 Years

INDU Index (Dow Jones Industrial 2014-02-27 08-35-42

 

LME Copper Daily Chart - 2 Years

LMCADS03 Comdty (LME COPPER    3 2014-02-27 08-34-44

Gold Spot Daily Chart - 2 Years

XAU Curncy (Gold Spot   $_Oz )  D 2014-02-27 08-36-31

Events for today

 

0855

DE

Feb

Unemployment

1000

EZ

Feb

Bus Climate & Con Sentiment

1300

DE

Feb

CPI prelim.

1330

US

Jan

Durable Gds & New Orders

1330

US

w/e

Jobless Claims

1530

US

w/e

EIA Nat Gas

1600

US

Feb

KC Fed

 

All times UK Local Time

Economic Market Calendar

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