Markets encouraged by Yellen's comments

Friday, February 28, 2014

The S&P 500 closed at a record high yesterday, adding 0.49% throughout the session after sanguine comments made by Janet Yellen in her testimony before the Senate Banking Committee lifted markets, citing harsh weather conditions for the recent disappointing data. The encouraging statement pushed the S&P 500 towards 1,854.29 after a shaky start to the session saw the index retest 1,840. The DJIA also built on recent support levels, adding 0.46% throughout the day bringing total gains throughout February of 6%. Better than expected durable goods orders for February in the US further reinforced the shift in sentiment and with a busy day for economic data today markets may experience further upside as investors await the release of Q4 GDP, Chicago PMI and the University of Michigan confidence index.

The yuan weakened for the 9th straight session yesterday and at one point reached 6.1760 against the dollar as speculation that the increased volatility in recent sessions was a result of the central bank widening the trading band. As Beijing pushes ahead with financial reforms the yuan may see further weakness as selling pressure persists, which could have wider implications for commodity buyers especially considering the recent weaker manufacturing growth outlook.

Raw sugar futures extended gains yesterday closing above 18.00 cents for the first time since early November after a brief pause saw prices struggling to breakout above 17.75 cents earlier this week. Second month futures rose 2% throughout the session as further details of the drought in Brazil began to emerge. Prices have rallied almost 20% since the start of the month as lower expected output in Brazil was compounded by concerns that excessive rains in India would further curb output.

S&P 500 closes at record high as Yellen's comments boost sentiment

SPX Index SP 500 Index Daily 2014 02 28 07 23 22

 CNY weakens further against the dollar

CNY Curncy China Renminbi Spot 2014 02 28 07 31 23

Raw sugar futures close above 18.00 cents on drought concerns in Brazil 

SB2 Comdty Generic 2Nd SB Fut 2014 02 28 08 03 46


Events for today

1000

EZ

Jan

Inflation/ unemployment

1330

US

Q1

Personal consumption

1445

US

Feb

Chicago PMI

1455

US

Feb

University of Michigan Survey

1500

US

Jan

Pending Home Sales

OE: 

Mar  Sugar (NYBOT)

All times UK Local Time

Economic Market Calendar

Topics: GDP, CNY, Sugar
More from: Kash Kamal