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Daily Market Outlook

Currencies

  • EUR/USD The euro increased against the dollar after a report showed France’s economy slowed down and as Royal Bank of Scotland Group Plc slashed its forecast for the common currency.
    • France’s statistics office confirmed today that gross domestic product was unchanged in the second quarter from the preceding period..
    • The euro was trading at $1.3577 around 7 a.m. London time.
  • USD/JPY The yen gained against the dollar before a government report that economists say will show orders for U.S. durable goods decreased, bolstering demand for the Japanese currency as a haven.
    • The Japanese currency advanced 0.3 percent to 76.55 per dollar.
  • USD/CHF The Swiss franc fell against the dollar as data showed the country’s consumer demand dropped to the lowest in almost two years in August.
    • The franc weakened to 89.92 centimes per dollar around 7:30 a.m. London time.

Commodities

  • Gold futures gained as commodities and equities rallied amid optimism that European leaders will take steps to resolve the region’s debt crisis.
    • Gold futures for December delivery gained $57.70, or 3.6 percent, to settle at $1,652.50 an ounce at 1:33 p.m. on the Comex in New York.
  • Oil fell in New York as investors speculated reports will show slowing global growth that may reduce fuel demand amid rising U.S. supplies.
    • U.S. gasoline stockpiles rose the most in five weeks, according to the American Petroleum Institute.
    • Crude for November delivery slid as much as $1.59 to $82.86 a barrel in electronic trading on the New York Mercantile Exchange and was at $83.07 at 3:14 p.m. Sydney time.

Equities

  • US Stocks rose after Greece made progress in meeting requirements for more international aid and Germany vowed continued support for the country.
    • The S&P 500 increased 1.1 percent to 1,175.38 at 4 p.m. New York time.
    • The Dow Jones Industrial Average rose 146.83 points, or 1.3 percent, to 11,190.69 yesterday.
  • European stocks surged yesterday, as the prospect of a beefed-up euro-zone bailout facility underpinned sentiment.
    • The U.K.’s FTSE 100 index added 4% to 5294.05.
    • France’s CAC-40 index ended up 5.7% at 3023.38 and Germany’s DAX advanced 5.3% to 5628.44.
  • Asian stocks markets were modestly higher Wednesday, as investors remained cautious amid the absence of a clear plan to resolve the euro-zone debt crisis.
    • Daikin Industries Ltd. (6367) climbed 3.6 percent after boosting its full-year operating profit forecast on China demand.
    • The MSCI Asia Pacific Index gained 0.2 percent to 113.69 as of 2:20 p.m. in Tokyo.
    • Japan’s Nikkei Stock Average was up 0.2
    • Hong Kong’s Hang Seng Index fell 0.7% while The Shanghai Composite Index was up 0.2%.

Sources: Bloomberg, FT

Filed in: Daily Market Outlook

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