Stock Market Trading
: 02 May 2014
With unemployment claims coming in higher than expected, the Dow Jones dropped 21 points to 16,561 yesterday on light profit taking after rallying for three straight sessions.
European equities are set to open fairly flat after the May Day holiday halted trading on the continent.
While the EU may have rested yesterday, they will be straight back into the spotlight with important manufacturing data today.
And the question to be asked is whether they will follow the UK with similarly positive results?
If so, this will surely indicate that the UK and EU recovery isn't solely based on the housing bubble.
Meanwhile in the US, anxious traders will be holding their breath until the Non-Farm Payroll figure is released.
With no weather excuses, analysts are expecting a very good figure to prove the US jobs market is improving.
Employers are predicted to have added 215,000 jobs, however, if they miss big, expect some big volatility in the markets.
Stock Market Trading
: 01 May 2014
European equities look to set to open marginally higher as further good economic data buoys markets and, more importantly, there were no surprises from the FOMC meeting last night.
The Federal Open Market Committee said that the US economy is gaining momentum, thus discarding concerns regarding weakness seen in earlier months.
It also reiterated its pledge to trim the pace of assets purchases whilst maintaining the benchmark interest rate at near zero for 'a considerable time'.
The US looks to have shrugged off its winter cold and has set its sights on the sun and new pastures, consequently recording highs, with the
Dow Jones moving 57 points higher to 16,584.
So, can we don our swim shorts and expect plain sailing for the foreseeable future? Not quite.
Economic releases including Personal Income and Spending, Non-Farm Payrolls and Manufacturing data will give further insight into the strength of the economy and determine whether the bulls can run easy.
This, coupled with UK consumer confidence hitting its highest level since mid-2007, portrays a very rosy outlook, for now.
Stock Market Trading
: 30 April 2014
Earnings really are driving the markets this week.
The bulls are riding waves of good economic data, and solid earnings have consequently pushed markets back in the direction of new highs.
Good news on the Russian front has reassured investors, and after a deep breath the economy looks in good health, with the US home price numbers confirming expectations and just a slight dip in consumer confidence.
As a result, the Dow Jones gained 62 points to 16,529 and remains not far from the record close of 16,598.
Nevertheless, equities will open slightly lower today following Twitter and eBay's mixed earnings releases post market.
Heavy volume in these stocks shows that the
tech sector is still under some pressure and many see them as being overvalued.
As for tomorrow's rate decision, no surprises are expected and a $10bn reduction in asset borrowing seems to be the general consensus.
I wouldn't go as far to say this won't affect the market as investors will look for any sign to suggest an early or delayed interest rate hike.
Stock Market Trading
: 29 April 2014
The feel good factor following
Pfizer's bid for
AstraZeneca sparked merger optimism in the equity markets, with US stocks reversing course after an early sell off.
Thus the Dow Jones ended 64 points higher at 16,463, paring most of Friday's losses.
European equities look set to open higher this morning after a choppy trading session in Asia, fuelled by mixed economic figures in the US and caution over the rest of the week's key events.
However, the 'sell in May' cycle is almost upon us.
And with some recent turbulent moves, particularly in US technology companies, a sell off may well be on the horizon.
Add to this the heightened tensions in the Ukraine and we could see this sooner than we expect.
That being said, expect more volatility today as the bulls and bears jostle for position ahead of a two day FOMC meeting, culminating in a policy announcement on Wednesday.
Stock Market Trading
: 28 April 2014
Uncertainty over whether technology shares are priced at realistic levels affected Amazon which dropped over 6% after announcing disappointing figures.
But the plunge in the US stocks was also caused by rising tensions in Ukraine, with an increasing numbers of investors considering taking profits off table.
The Dow Jones closed 81 points down at 16,388.
European equities look set to open fairly flat this morning as traders buckle up and settle down for what will be a busy week ahead.
US earnings continue to throw up some juicy surprises and with a quarter of the S&P 500 reporting this week, expect more to follow.
We will also see a cocktail of economic data, including housing data, ADP and Non-Farm employment, whilst the FOMC meeting and rate decision will take centre stage on Wednesday.
The bulls may look to retrieve some of the losses from Friday, but with tension increasing in the Ukraine, you could understand a cautious approach.
Fasten your seatbelt.
The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced.
By Jonathan Sudaria, 2 May 2014
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