Friday, February 1, 2013

5 Important Info Session Coming to New York Open Market

5 Important Info Session Coming to New York Open Market
  1. Jobs Report: The focus of investors will be focused on the U.S. labor market report, after weak consumer confidence and a surprise contraction in gross domestic product data, market participants expect an increase in non-farm payrolls of data to be 160,000 but the figure is not expected to be enough to lower the unemployment rate in 7.8%. Bank of America estimates that only nfp rise of 130,000, while Wells Fargo with a predicted increase in optimism over 200.000 workers and unemployment rate decreased to 7.7%.
  2. Auto Industry: Attention will then be focused on the automotive industry when it reported sales of vehicles and trucks. Figures attention of investors is 15 million units, if sales fall below that level could potentially arise disappointment from investors over the sale of the more bullish estimates.
  3. Exxon Reports: Investors will also await earnings reports Exxon, which is the world's largest companies as Apple crumble. Exxon earnings are expected to increase the rate of the previous year. Furthermore, market participants will get a report that is a competitor Chevron earnings Exxon.
  4. UK Manufacturing: The manufacturing sector showed expansion in the UK back in January despite a moderate, but these data raised hopes that the UK economy may avoid a new recession in Q1 2013. In the report there is a component manufacturing PMI Factory output grew in the fastest pace since September 2011.
  5. EU Recovery: Euro zone PMI manufacturing report successful beyond estimates indicate economic contraction in the region will likely end. However the single currency euro exchange rate begins to approach levels that could hurt German exporters that inhibit the overall recovery rate. Therefore it is not surprising that the euro zone's monetary authorities will provide verbal intervention into markets if the EURUSD back pairing skyrocket 200-300 points this month.
U.S. Stock Futures Up Ahead of Data Follow Labor

U.S. stock index futures indicated the opening of the session in a positive Wall Street on Friday, in line with the projected growth in U.S. employment increased moderately in the month of January while the unemployment rate expected to remain steady. Positive projections support the view that the pace of the U.S. economic recovery is still on track despite his was shocked by the contraction of GDP growth in Q4 2012. From the corporate side, investors will await earnings reports two biggest U.S. oil companies, namely Exxon and Chevron are predicted to increase in quarterly profit. Observed so far DJIA index futures rose 0.41% at the level of 13.852, while the S & P500 rose 0.27% futs to a level of 1,497.25 and the Nasdaq rose 0.29% follow up futures traded at 2,732.75 so far.

Manufacturing Data Propped European Stock Market


European stock markets rose again on Friday after the British stock index led telecom operator BT reported a rate of earnings that exceeded estimates as well as the strengthening of the mining sector reported positive growth in China factory. There are two versions of China's PMI manufacturing index report that showed China's factory output levels that spurred increased resource sector stocks in Europe. Observed so far London's FTSE index rose 0.31% in the level of 6,279.50, while Germany's DAX rose 0.46% to a level of 7,831.5 and France's CAC soared to 1.02% trade at 3,769.0 far. Another positive catalyst manufacturing PMI data reports from different areas euro zone rose to its best level in the last year, helped by German production data are quite solid. This report was successfully added to optimism investors that the worst period of the European debt crisis has ended.

Euro Zone Inflation Target Near ECB

Eurozone inflation rate fell more than forecast in January to a signal that the company cut prices to attract buyers while the unemployment rate remained at a record high at the end of 2012. Consumer inflation rate in the euro zone fell to 2% in January compared to a year ago, according to Eurostat pad Friday. Data was lower than economists forecast of 2.2%, which is also the level in the month of December. The unemployment rate remained at a record high at 11.7% in December, according to Eurostat, slightly lower than economists' forecasts for 11.3%. Currently, inflation is close to target of the European Central Bank, but the decline below 2%, and the unemployment rate reached a record high will give room for the ECB to cut interest rates again to stimulate the economy. However, improvement in the business sentiment in the euro zone for the third month in January as well as factory output increase indicate that the European bloc has passed the worst of the recession, which means that additional stimulus in the form of ECB rate cuts may not be necessary. "Inflation is still not really there," said Thomas Costerg, an economist at Standard Chartered in London. "Today, with inflation in Germany slowed, it will trigger a debate on how the ECB will ease policy," he said.

Attempting Sterling Rebound


UK manufacturing data a bit off the mark than the estimate but the pound came under pressure from the London trading session due to pressure EURGBP cross rate that soared to the highest level daily. GBPUSD pairing observed so far down -0.16% at 1.5829, after briefly to its lowest level at 1.5809 and the intraday highs at 1.5877 daily. Pound slightly propped up this week after a reversal could happen down the level of 1.5700, the action started to speculative buying after the manufacturing sector showed increase in component orders for 3 months in a row that indicates the rate of growth in Q1 was not as bad as previously thought. Technically, as long as the price is still able to hold above the 1.5800 level, the rebound GBPUSD pairing still has the potential to continue at least re-test the resistance area nearby at around 1.5850.

Euro creamed Sterling After Economic Data

Sterling currency fell sharply in afternoon trade weekend (1/2) due to exposure to 'cross' the single European currency, which the EURGBP rally up to the highest level 0.8647. The euro shot up to its highest level in 14 months against the Sterling primarily driven by the improvement in eurozone manufacturing figures that confirm that the worst of the crisis in the region has now passed. Eurozone manufacturing PMI figure rose to 47.9 in January from 47.5 previously. While the German manufacturing activity also jumped to 49.8 points from the previous period 48.8 48.8 and above expectations. While reports from the euro zone last Wednesday also clarify the view that the debt crisis that hit the region will not be as bad as previously thought. That's because increasing economic sentiment improved more than forecast in across all sectors in January, while the size of the phase of the business cycle also increased this month. And strengthening the euro is now a signal for the success of the European Central Bank (ECB) in tackling the debt problem. And significantly, the money is now flowing to Europe.

Weakening Yen More To Long

The yen fell to its lowest level in more than 2 ½ years against the dollar and the euro on Friday, pressured by expectations of more aggressive monetary easing by the Bank of Japan. A weaker yen quickened as break level option at 125.00 against the euro and 92.00 against the dollar, according to traders. The sell yen to be the only one to do with Japanese Prime Minister Shinzo Abe to add pressure on the BOJ to ease monetary policy more aggressively to revive the economy. Analysts forecast a decline in the yen will continue with some estimated dollar will rise until it reaches a level of 100 yen. "We expect a weaker yen will continue due to the aggressive policy home by Abe," said Michael Sneyd, analyst at BNP Paribas. He estimates the dollar will reach the level of 95 yen in the first quarter of this year. Much different with it, concerns about the European debt crisis gradually eased and the European Central Bank is more optimistic relative aoutlook pad making the euro more attractive than the yen and the dollar.

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