Daily Market Outlook by ACFX 08/08/2013

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Daily Market Outlook

Important Financial Indicators of the day

JPY - Tentative - BOJ Press Conference

USD - 15:30 (GMT) - Unemployment Claims

Forecast 336K

Previous 326K

Currencies

•AUD/USD Australia’s dollar surged to the highest this month against the greenback after imports in China, the South Pacific nation’s biggest trading partner, rose more than expected in July.
•The Australian dollar gained 0.6 percent to 90.56 U.S. cents as of 1:45 p.m. in Sydney from yesterday, after reaching 90.71, the highest since July 31. New Zealand’s currency slipped 0.2 percent to 79.57 U.S. cents, after touching 79.98 yesterday, also the highest since July 31.

•USD/JPY The yen rose to a seven-week high versus the dollar amid bets the Bank of Japan at its policy meeting tomorrow will refrain from adding to stimulus that’s helped weaken the currency 11 percent this year.
•The yen added 1.4 percent to 96.33 per dollar at 5 p.m. in New York, the strongest level since June 20. Japan’s currency climbed 1.2 percent to 128.47 per euro. The euro added 0.2 percent to $1.3336 after touching $1.3345, matching a six-week high set July 31.

•USD/CAD Canada’s dollar slid to the lowest in almost four weeks as commodities fell for a fourth day and stocks sank amid bets the Federal Reserve may slow quantitative-easing stimulus in the nation’s biggest trade partner.
•The loonie, as the currency is nicknamed for the image of the aquatic bird on the C$1 coin, depreciated 0.4 percent to C$1.0423 per U.S. dollar at 5 p.m. in Toronto. It touched C$1.0445, the weakest level since July 11. One Canadian dollar buys 95.91 U.S. cents.

Commodities

•Oil West Texas Intermediate crude rose for the first time in five days as exports and imports climbed last month in China, the world’s second-biggest oil consumer •WTI for September delivery gained as much as 51 cents to $104.88 a barrel in electronic trading on the New York Mercantile Exchange and was at $104.82 at 1:45 p.m. Sydney time. The volume of all futures traded was 20 percent below the 100-day average. The contract decreased 93 cents to $104.37 yesterday, the lowest since July 30.
•Brent for September settlement rose 41 cents to $107.85 a barrel on the London-based ICE Futures Europe exchange. The European benchmark was at a premium of $3.01 to WTI futures, down from $3.07 yesterday.

•Gold advanced before a report today that may show U.S. jobless claims increased, potentially delaying moves by the Federal Reserve to slow the pace of bond purchases. Silver and platinum climbed.
•Bullion for immediate delivery gained as much as 0.6 percent to $1,294.85 an ounce and was at $1,292.77 by 10:12 a.m. in Singapore. Prices touched $1,273.02 yesterday, the lowest since July 17. Gold for December delivery rose 0.5 percent to $1,291.40 an ounce on the Comex.

Equities

•Asian stocks rose, led by health-care companies, after the Bank of Japan maintained its stimulus policy and Chinese exports grew more than forecast.
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The MSCI Asia Pacific Index gained 0.6 percent to 134.14 as of 11:15 a.m. in Hong Kong, with all 10 industry groups on the gauge advancing. Two shares rose for each that declined.

•European stocks fell as the Bank of England said it won’t raise interest rates or reduce bond purchases until the U.K.’s jobless rate falls to 7 percent, sparking concern it expects the economic recovery to be slow.

•The Stoxx Europe 600 Index declined 0.2 percent to 302.81 at the close of trading, as Bank of England Governor Mark Carney said the U.K. economy hasn’t reached “escape velocity.” The benchmark gauge has rallied 9.9 percent since June 24 as the Federal Reserve, the European Central Bank and the Bank of England pledged to continue stimulus.

•U.S stocks declined, giving the Standard & Poor’s 500 Index (SPX) its first three-day drop since June 12, amid growing speculation the Federal Reserve will pare bond purchases this year as the economy strengthens.

•The S&P 500 slid 0.4 percent to 1,690.91 at 4 p.m. in New York. The benchmark gauge has fallen 1.1 percent this week after closing at a record on Aug. 2. The Dow Jones Industrial Average decreased 48.07 points, or 0.3 percent, to 15,470.67 today. About 5.5 billion shares changed hands on U.S. exchanges, 12 percent below the three-month average.