Market Report: The importance of the economic data.
On many days there are no economic reports. On some days, like yesterday, there were many reports. Yesterday was a day very charged with important macroeconomic data in U.S. And that data was very positive, now that is good, a couple of weeks before a good numbers in the economics was bad for the stock markets, because the inverse movements with the possibility to rise the interest rate from the FED, but today the investors know that the FED will raise the rate on December, so good number is good for the markets. So one of the positive data was the U.S. service providers indicated an upturn in business activity growth from the six-month low recorded during August.
The U.S. stocks closed higher on Wednesday, led by energy and financials, as investors parsed through a slew of economic data while watching surging oil prices. The Dow Jones industrial average ended about 110 points higher. The S&P 500 rose 0.4 percent, with financials and energy gaining more than 1 percent to lead advancers. The Nasdaq rose approximately 0.5 percent. And today we can see how the European markets are trading also in positive trend.
Another important thing that we need to pay attention for tomorrow is the famous report: NFP, because a strong U.S. payrolls report on Friday could cement expectations of a rate hike. The median forecast of economists polled by Reuters is for non-farm payroll to rise 175,000.
But into the forex market and more precisely on the USD we could have not positive effects, because in the last days the U.S. dollar index was trading very up, going up from 95.20 until 96.26 and a higher dollar is due to expected higher US interest rates, less $USD in the world, as other pay back $USD loans and another bad consequences, a higher dollar is not good. And in a relativity short term we will feel the negative effects.
In commodities the Gold extended losses, hitting a 3 1/2-month low of $1,262.2 per ounce and last stood at $1,267.4, has been testing key support levels, coming under pressure ahead of Friday’s U.S. non-farm payrolls. And Silver also fell to $17.69 after having fallen to $17.565 per ounce, its lowest since late June.
The FTSE 100 has enjoyed an impressive rally to near all-time highs this year. The British pound flirted near a three-decade low of $1.2686 touched on Wednesday on worries about Britain’s EU exit. A lower Pound is very positive for the UK stock market; on the end of the week maybe we will see a little take profit, or at least the reduction of the increases.
Graphics by: www.etoro.com
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Graphics by: www.etoro.com
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