Quantcast
Latest Stories

Market mood cautious ahead of raft of US news



People walk on a pedestrian crossing in Tokyo, Tuesday, July 30, 2013. Japan’s industrial output fell in June for the first time in five months, the government said Tuesday as it released data highlighting the fragility of the recovery in the world’s No. 3 economy. AP

LONDON— Global stocks were somewhat lead-footed Tuesday as investors prepared for a run of economic developments, particularly out of the U.S., that may determine how financial markets perform through the rest of the summer.

Though the U.S. Federal Reserve is not expected to announce any policy changes at the conclusion of its two-day meeting on Wednesday, investors will be monitoring a raft of economic data this week that could well influence expectations of a change in its monetary policy.

“Traders will remain cautious ahead of the two-day US Federal Reserve meeting which begins tonight,” said David Madden, market analyst at IG.

In Europe, Britain’s FTSE 100 rose 0.2 percent to 6,574, while Germany’s DAX was up the same rate to 8,278. The CAC-40 in France was also 0.2 percent higher at 3,975.

Wall Street also appeared headed for modest gains at the open with both Dow futures and the broader S&P 500 futures up 0.1 percent.

Many in the markets think that the Fed could start reducing its monetary stimulus as soon as September. The Fed is currently buying $85 billion in Treasury and mortgage bonds a month in a move that has kept long-term rates near record lows and supported economic recovery.

The main points of interest in the U.S. later Tuesday will be the Case-Shiller house price survey and the latest gauge of consumer confidence from the Conference Board. Over the rest of the week, investors will have the monthly manufacturing survey from the Institute for Supply Management to digest, the first estimate of second-quarter U.S. economic growth, as well as a run of payroll surveys, notably Friday’s official nonfarm payrolls report for July.

The dollar is also fairly flat ahead of the data dump over the rest of the week. The euro was 0.1 percent higher at $1.3272, helped slightly by a survey showing economic confidence in the 17-country eurozone up at a 15 month high. The European Commission’s headline economic sentiment indicator rose to 92.5 in July from the previous month’s 91.3 in another sign that the eurozone may be emerging from recession.

Meanwhile, the dollar rose 0.2 percent to 98.09 yen. On Monday, the dollar fell to a month-low of 97.61 yen and that weighed heavily on Japanese stocks — a stronger yen could make the country’s exporters more expensive and hurt their fortunes.

The Nikkei 225 index recovered some of Monday’s retreat, closing 1.5 percent higher at 13,869.82 despite a drop in industrial output for June. The Economy Ministry said manufacturing slipped 3.3 percent from the month before in June and was 4.8 percent lower than a year before.

While the data underscored the fragility of Japan’s economic recovery, it also could provide further argument in favor of the aggressive steps taken by Prime Minister Shinzo Abe to rejuvenate the moribund economy.

Elsewhere in Asia, South Korea’s Kospi advanced 0.9 percent to 1,917.05 while Hong Kong’s Hang Seng added 0.5 percent to 21,953.96. Mainland Chinese shares were mixed.

Oil prices drifted lower, with the benchmark New York rate down 60 cents at $103.95 a barrel.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: global stocks , Nikkei 225 index , Tokyo , US Federal Reserve , Wall Street , World economy



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Security in place for Obama as police hope for ‘peaceful’ visit
  • Retired SC justice Lorenzo Relova; 98
  • Ligots fight 2nd forfeiture case
  • PH will be partly cloudy in afternoon, evening—Pagasa
  • Ex-COA chief nabbed for plunder
  • Sports

  • Sharapova advances to Stuttgart quarterfinals
  • Galedo caps ride of redemption
  • Beermen, Express dispute second semis slot today
  • Lady Agilas upset Lady Bulldogs in four sets
  • NLEX roars to 7th D-League win
  • Lifestyle

  • ‘Recovered’ Banksy works on display ahead of sale
  • Marinduque: Visiting the ‘palm of the ocean’
  • First at Vatican in 60 years
  • How Jing Monis Salon gave Krissy the pixie
  • Want to be a supermodel? Work on your inner beauty, says Joey Espino
  • Entertainment

  • Paul McCartney to play at Candlestick concert
  • Kristoffer Martin: from thug to gay teen
  • Has Ai Ai fallen deeply with ‘sireno?’
  • California court won’t review Jackson doctor case
  • Cris Villonco on play adapted from different medium
  • Business

  • PAL hailed for ban on shark fin cargo
  • BSP to change tint of P100 bill
  • Nielsen sees car buying boom in the Philippines
  • How author of best-seller exposed ‘one percent’ economic elite
  • Bangko Sentral readies new bank lending rules
  • Technology

  • Cloud strength helps Microsoft earnings top Street
  • Vatican announces hashtag for April 27 canonizations
  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • Opinion

  • Editorial Cartoon, April 25, 2014
  • No deal, Janet
  • Like making Al Capone a witness vs his gang
  • MERS-CoV and mothers
  • A graduation story
  • Global Nation

  • Only 4 Etihad passengers not accounted for
  • Abandoned in Malta,15 PH seamen return
  • Senator hopes PH will also get same vow
  • HK victims to get P115M; traders raised money
  • Afghan hospital guard kills 3 US doctors, including Fil-Am pediatrician
  • Marketplace