Strong US corporate earnings improve market sentiment

Thursday, April 24, 2014

The US equity markets fluctuated within the recent range on Wednesday and slid lower due to some profit taking following the tepid US economic data including Markit manufacturing PMI and new home sales. The Dow Jones index retreated slightly and ended the session at 16501.65 points, down -0.08%, while the S&P 500 and the Nasdaq have also posted fresh losses, falling by 0.22% and 0.83%, respectively. Today, the release of the weekly jobless claims as well as durable goods and build permits could give further direction.

In Asia, the Nikkei index fell sharply by 141.28 points (-0.97%), while the Hang Seng managed to stay in positive territory after gaining near 0.15%. Investors will be keeping an eye on the corporate earnings results from big names in the Asian market inkling Honda, Panasonic and Canon, which are scheduled to report results in the next few days.

The New Zealand dollar rallied after the country's central bank raised interest rates and signalled more increases ahead.

NZD Spot

NZD Curncy (New Zealand Dollar S 2014-04-24 08-58-17

European equity markets rebounded in early trade this morning, supported by strong corporate earnings results from US companies, which boosted market sentiment. Apple and Facebook reported solid earnings in the Q1 2014, beating analysts’ expectations. The London benchmark index has climbed higher in early trade, gaining 0.5%.

 

Brent front month futures held around $109 per barrel, for a fifth consecutive trading session amid renewed concerns about oil supplies in Russia and Ukraine. In addition, US crude oil inventories surged last week to reach their highest level since records began in 1982, mainly due to another large build on the Gulf Coast, according to the Energy Information Administration report.

 In Ukraine, the political conditions continue to remain highly tentative. According to latest reports from the country’s interior minister, the Ukraine’s military has retaken control of the city hall in eastern city of Mariupol.

Brent Front Month

CO1 Comdty (Generic 1st 'CO' Fut 2014-04-24 08-59-47

 

 

Events for today:

 

0700

DE

Mar

Import Prices

0900

DE

Apr

Ifo Business Climate

0930

UK

Mar

Retail Sales

1330

US

Mar

Durable Gds & New Orders

1330

US

w/e

Jobless Claims

1530

US

w/e

EIA Nat Gas

1600

US

Apr

KC Fed

 

All times UK Local Time

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