October 28, 2013
- in Uncategorized by schooloftrade
US Market Update: Markets Quiet Ahead of FOMC
***Economic
Data***
Data***
– (UK) Oct CBI Industrial Reported Sales: 2 v 32e
– (US) Sept Industrial Production M/M: 0.6% v 0.4%e; Capacity
Utilization: 78.3% v 78.0%e; Manufacturing Production: 0.1% v 0.3%e
Utilization: 78.3% v 78.0%e; Manufacturing Production: 0.1% v 0.3%e
– (US) Sept Pending Home Sales M/M: -5.6% v 0.0%e; Y/Y: +1.1%
v +3.5%e
v +3.5%e
– (US) Oct Dallas Fed Manufacturer Activity: 3.6 v 9.0e
–
Trading has been a bit subdued this morning, as investors await the
FOMC decision due out on Wednesday. Not too much is expected out of the
meeting, with the taper now all but off the table for this time around. As of
writing, the DJIA is down 0.17%, the S&P500 is flat and the Nasdaq is down
0.37%.
Trading has been a bit subdued this morning, as investors await the
FOMC decision due out on Wednesday. Not too much is expected out of the
meeting, with the taper now all but off the table for this time around. As of
writing, the DJIA is down 0.17%, the S&P500 is flat and the Nasdaq is down
0.37%.
– The
September pending home sales data were not pretty, with
big misses seen in both the m/m and y/y figure. The m/m data has been negative
for four months in a row. The NAR commented that lower housing affordability
are likely responsible for the bulk of reduced contract activity. “In
addition, government and contract workers were on the sidelines with growing
insecurity over lawmakers’ inability to agree on a budget,” said the NAR.
Homebuilder stocks are in the red following the data, but losses have been
fairly mild.
September pending home sales data were not pretty, with
big misses seen in both the m/m and y/y figure. The m/m data has been negative
for four months in a row. The NAR commented that lower housing affordability
are likely responsible for the bulk of reduced contract activity. “In
addition, government and contract workers were on the sidelines with growing
insecurity over lawmakers’ inability to agree on a budget,” said the NAR.
Homebuilder stocks are in the red following the data, but losses have been
fairly mild.
– The
Dallas Fed October manufacturing activity index fell to 3.6
from September’s 12.8 reading and August’s 5.0 level. Every sub-index was equal
to or higher than the September report except for new orders, which ground to a
halt in the month. The ISM-weighted version of the index rose slightly, from
51.6 to 52.5, but still well below the US September ISM Manufacturing reading
of 56.2.
Dallas Fed October manufacturing activity index fell to 3.6
from September’s 12.8 reading and August’s 5.0 level. Every sub-index was equal
to or higher than the September report except for new orders, which ground to a
halt in the month. The ISM-weighted version of the index rose slightly, from
51.6 to 52.5, but still well below the US September ISM Manufacturing reading
of 56.2.
– The
dollar saw some strength in the overnight session as
pairs consolidated ahead of this week’s FOMC meeting. USD/JPY touched 97.80 for
the first time in three sessions after dipping into the 96 handle on Friday.
Meanwhile EUR/USD dropped slightly, to around 1.3780. Note that oil prices are
slightly elevated as Brent rises into the $107 handle on more Libya port troubles.
WTI front-month crude has followed Brent higher, to $98.60.
dollar saw some strength in the overnight session as
pairs consolidated ahead of this week’s FOMC meeting. USD/JPY touched 97.80 for
the first time in three sessions after dipping into the 96 handle on Friday.
Meanwhile EUR/USD dropped slightly, to around 1.3780. Note that oil prices are
slightly elevated as Brent rises into the $107 handle on more Libya port troubles.
WTI front-month crude has followed Brent higher, to $98.60.
