Global Economic Intersection
Advertisement
  • Home
    • 카지노사이트
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
    • 카지노사이트
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result

2 Min. Drill: Daily Recap and Market Movers Last Week

admin by admin
February 24, 2014
in Uncategorized
0
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

Context for the week beginning 24 February 2014

by Cliff Wachtel, FX Empire

A daily summary of global stock market price action for last week and what caused it in Asia, Europe and the US – to help investors and traders of forex, stocks, indexes etc., get back into context for the week ahead in global financial markets.

The following is a partial summary of the conclusions from the fxempire.com weekly analysts‘ meeting in which we share thoughts about what’s driving major global asset markets. The focus is on global stock indexes as these are the best barometer of overall risk appetite and what drives it, and thus of what’s moving forex, commodities, and bond markets.

It’s a quick summary of last week’s international stock market action and what drove it. It’s our starting point for our follow up articles on:

  • Lessons For The Coming Week And Beyond
  • Coming Week Top Market Movers
  • EURUSD Outlook
  • Related Special Features: These vary each week depending on what’s happening. You’ll find them here.

The exact mix of articles varies somewhat from week to week, depending on what’s likely to be most important for the coming week and beyond. You can find all of these here as they come out over the weekend. You can skim it in about 2 minutes, or take a bit more time to study it. A useful weekly summary of what’s driving global asset markets, very useful for putting you into context for the coming week.

That’s why I write it as part of my own research and analysis.

MONDAY: Modest Follow Up To US Close Friday

Asian indexes closed solidly higher overall [Japan +0.6%, Hong Kong +0.6%, China+0.8%, India +0.9%, Australia +0.52%, Korea +0.31% Singapore +1%] despite negative Asian data, primarily on follow up to US gains Friday after Asia had closed.

European indexes were overall up about 0.4% on thin volume.

US stock markets were closed for the Presidents Day holiday.

TUESDAY: Asia’s Big Divergent Moves From Divergent Central Bank Moves

Asian indexes were mostly mixed with minor up or down moves. There were two big exceptions. Japan soared on news of new central bank easing, and China sank on news of central bank tightening. Specifically:

  • Japanese stocks jumped 3.1% after the BOJ announced that it would extend three special loan facilities by a year from their scheduled expiry at the end of March. It also kept monetary policy steady, and maintained its upbeat assessment on Japan’s economy. The move was probably in response to very disappointing Q4 GDP figures reported Monday (-0.3% vs. +0.7% forecasted), as many had expected consumers to move purchases forward ahead of a value-added tax (VAT) coming in April.
  • The PBOC drained $7.9B from the country’s liquidity by selling 48 bln yuan in repurchase contracts, the first such move in 8 months, after weekend data showed that aggregate financing had climbed to a record 2.58 trln yuan ($425 bln) in January from 1.23 trln yuan in December, despite the bank’s attempts to reduce lending.

European indexes were mixed, with mostly minor up or down moves, as a poor ZEW sentiment reading and weak retail sector (in the wake of a few stock downgrades) weighed on the indexes.

US indexes were mixed [Dow -0.15%, S&P +0.11%, Nasdaq +0.68%] and mostly flat, with poor readings from the NY Fed’s Empire State manufacturing index and the NAHB’s housing market index. Weak earnings from Coca-Cola (KO) also weighed specifically on the Dow. In contrast, the tech-heavy Nasdaq was lifted to a 13 year high by its healthcare sector components on M&A activity as Actavis bought Forest Labs for $25 bln.

WEDNESDAY

Asian indexes were mixed, with a diverse variety of up or down moves [Japan -0.5%, Hong Kong +0.3%, China +1.1%, India +0.4%, Australia +0.25, Korea -0.20 Singapore +0.59]. In sum another day of drifting or technically inspired moves, following the overnight close in the US. The only material moves came from local issues. For example, the Nikkei had hit resistance on daily charts and there was no news to support further gains, so after the prior day’s big 3.1% gain profit taking was tempting.

The same comments apply to the similarly flat performance of European indexes [UK FTSE 100 +0.01% Germany -0.07%, France +0.24% Spain +0.11% STOXX50 0.01%].

In contrast, US indexes were all down solidly [Dow -0.55%, S&P -0.65%, Nasdaq -0.82%] and that result bears some logical connection to the events of the day, particularly:

  • Weak housing data, with both building permits and housing starts missing expectations. Housing starts power-dived 16% month-over-month in January to an annualized rate of 880,000. Building permits fell 5.4% to 937,000. Both figures were below expectations by a wide margin. See our post on lessons for the coming week here for the details and implications.
  • The FOMC meeting minutes release: Fed officials agreed unanimously to continue the taper program but revealed little consensus over short-term rates – a mildly bearish result that was not unexpected but adds uncertainty about the real matter of concern – when the Fed will start raising benchmark interest rates. The WSJ’s chief Fed-watcher found the mere re-entry of rate hikes into the FOMC’s discussions somewhat hawkish and thus bearish for stocks.
  • Before the release of minutes:
    • Atlanta Fed President Dennis Lockhart said he expects the first rate hike in mid-2015
    • The IMF warned of a still-weak economic recovery with significant risks remaining.

THURSDAY

Asia closed mixed but mostly lower on data showing that China’s factory activity is slowing at a faster pace.

European indexes closed mixed with generally modest gains or losses on the day. These reflected the muddled nature of the recent data, bearish China mfg data and FOMC minutes versus bullish US mfg data and the prevailing resilience of developed world stocks

In contrast, US stocks closed solidly higher [Dow +0.57%, S&P +0.60%, Nasdaq +0.70%], shrugging off a batch of top tier potentially market moving reports that missed expectations. Why? The likely answer is in the daily chart of the S&P 500 or Dow, as both began the day firm support on the daily charts, so we call this your basic technical bounce within an overall uptrend on both daily and longer term charts.

FRIDAY

Asian indexes closed higher overall [Japan +2.9%, Hong Kong +0.8%, China -1.2%, India +0.8%, Australia, +0.52%, Korea +1.41%, Singapore +0.43%], following up on the higher US close during the night. China was the big laggard, as continued credit market turmoil expected, plus Thursday’s weak recent manufacturing data tempted weekend profit takers.

European indexes were mostly solidly higher [UK FTSE 100 +0.37% Germany +0.40%, France +0.59% Spain +0.06% STOXX50 +0.42%] on no particular news other than some analyst upgrades for a few French stocks. So we call today’s result random market noise.

Earnings results continue to be good enough to prevent a selloff. Per Thomson Reuters Starmine data, out of the 60% of the STOXX 600 companies that have reported results roughly 59% have met or beaten expectations, with net profits rising 1.2 percent year-over-year on average.

US indexes inched lower [Dow -0.19%, S&P -0.19%, Nasdaq -0.10%] as news was mixed at best.

Dallas Fed’s Richard Fisher said he would continue to promote the rolling back of the Fed’s monthly asset purchases- mildly bullish

Existing home sales fell more than expected in January, providing confirmation of the weak housing data earlier in the week, and providing yet another sign that the housing market is being hurt by higher mortgage rates and harsh winter cold.

Index

% Change This Week

YTD %

DJIA

-0.3

-2.9

Nasdaq

0.5

2.1

S&P 500

-0.1

-0.7

Russell 2000

1.3

0.1

CONCLUSIONS

In conclusion, here’s a snapshot of global stock indexes as of the week’s end and a few observations.

Global Markets Review 2 Minute Drill: Daily Recap, Market Movers
Weekly Charts Of Large Cap Global Indexes With 10 Week/200 Day EMA IN RED: LEFT COLUMN TOP TO BOTTOM: S&P 500, DJ 30, FTSE 100, MIDDLE: CAC 40, DJ EUR 50, DAX 30, RIGHT: HANG SENG, MSCI TAIWAN, NIKKEI 225

FOR ‘S & P 500’ AND ‘DJ EUR 50’ WEEKLY CHART OCTOBER 2012 – PRESENT:10 WEEK EMA Dark Blue, 20 WEEK EMA Yellow, 50 WEEK EMA Red, 100 WEEK EMA Light Blue, 200 WEEK EMA Violet, Double Bollinger Bands: Normal 2 Standard Deviations Green, 1 Standard Deviation Orange
Source: MetaQuotes Software Corp, www.fxempire.com, www.thesensibleguidetoforex.com

Note how US and European indexes mostly went nowhere, as indicated by frequent “doji star” weekly candles (shaped like “+) signs. This candle shape generally indicates indecision, and is especially significant when a trend hits major support or resistance, because it shows markets are respecting that resistance and are unlikely to break past it until they get a reason to do so.

Note also in the two charts in which we show double Bollinger bands, the S&P 500 and DJ STOXX50, both bellwethers of US and Europe respectively, not only do both display these dojis as they approach strong resistance of multi-year or all-time highs, they also rest at the edge of their double Bollinger band buy zones.

In sum, we’ve a double-indication that risk appetite is hitting its limits given the current outlook for the fundamentals that have fueled the rally: global growth, earnings, and central bank policy. This price level (the 1850 area on the S&P 500) has been repeatedly tested since December hand has held firm, so until we get some material new fundamental drivers (better growth data, new easing?) the odds favor a period of flat range trading.

Growth remains at best slow and steady, and the next likely moves in interest rates from most major central banks are likely to be steady or higher. The two central banks most likely to consider further easing at this stage are the ECB and BoJ. If either did ease, that would benefit the USD versus the EUR.

To be added to Cliff’s email distribution list, just click here, and leave your name, email address, and request to be on the mailing list for alerts of future posts.

DISCLOSURE /DISCLAIMER: THE ABOVE IS FOR INFORMATIONAL PURPOSES ONLY, RESPONSIBILITY FOR ALL TRADING OR INVESTING DECISIONS LIES SOLELY WITH THE READER.


Previous Post

Market Commentary: SP500 Closes Lower Than Previous High Marks After Making New High

Next Post

Infographic of the Day: Over-Medicated America

Related Posts

Unlocking the Future: Google's Game-Changing Move to Advertise NFT Games Starting September 15th
Business

Unlocking the Future: Google’s Game-Changing Move to Advertise NFT Games Starting September 15th

by John Wanguba
September 8, 2023
Bitcoin Is Finally Trading Perfectly Like 'Digital Gold'
Economics

Bitcoin Is Finally Trading Perfectly Like ‘Digital Gold’

by John Wanguba
August 5, 2023
Can Worldcoin Overtake Bitcoin?
Economics

Can Worldcoin Overtake Bitcoin?

by John Wanguba
August 4, 2023
Bitcoin Is Steady Above $29,000 Awaiting US NFP Figures
Economics

Bitcoin Is Steady Above $29,000 Awaiting US NFP Figures

by John Wanguba
August 4, 2023
Namibia Will Regulate And Not Ban Crypto With New Law
Finance

Namibia Will Regulate And Not Ban Crypto With New Law

by John Wanguba
July 25, 2023
Next Post

Infographic of the Day: Over-Medicated America

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins bank banking banks Binance Bitcoin Bitcoin market blockchain BTC BTC price business China crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum Europe Federal Reserve finance FTX inflation investment market analysis Metaverse NFT nonfungible tokens oil market price analysis recession regulation Russia stock market technology Tesla the UK the US Twitter

Archives

  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • Unlocking the Future: Google’s Game-Changing Move to Advertise NFT Games Starting September 15th
  • Bitcoin Is Finally Trading Perfectly Like ‘Digital Gold’
  • Can Worldcoin Overtake Bitcoin?

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.