Review of the world’s major financial markets from February 24, 2015

If the topic with Greece still had some value in the first half of the day, when there is news that the submitted list of reforms approved by the Eurogroup, everyone immediately forgot about it and moved on performance Janet Yellen. Is to pay tribute — EUR / USD slightly moved away from the lows of the day, and the German DAX broke finally 11200 and updated record high at 11,228.5.

About the speech by Fed left many ambiguities, as the market is fully focused on that to see if the word «patient» in the text. And hypothetical comments Yellen using this word caused excitement in the market. However, the main point performance was the fact that when the word «patient» will disappear from the text — this will mean that the Fed may not necessarily raise rates at future meetings. It’s a little upset supporters of the dollar, as exuded uncertainty about summer tightening. USD / JPY slipped to 118.90 from the daily high at 119.83.

Meanwhile, precious metals is pleased: gold pullback from 1.5-month low 1,190.39 to 1,200.50 at the close ounces, while silver has grown to 16.30. US stock indexes, of course, also added to this, as we expected. Among stocks worth noting specifically Facebook — large investment banks in recent assessment of the prospects improve Instagram, which is owned by Facebook. In addition, shares of the world’s largest social network actively bought by institutional investors, among which are seen Vanguard and JPMorgan.

Economic data:

  • US February Consumer Confidence 96.4 vs. 99.6
  • List of reforms was approved by the Eurogroup Greece
  • Fed Chairman Janet Yellen as part of his presentation was «softer» than anticipated.

Forecast for Wednesday, February 25

Stock market

From what has been said Yellen can extract some important points. She emphasized the weakness of the global economy, which may limit the growth rate of the United States. She touched certain indicators of the labor market, which usually do not attract much attention (the pace of layoffs, the percentage of the labor force, etc.), which means that even impressive gains until January convinced the Fed is that the labor market is OK . And, of course, she mentioned about inflation on the salary level. All this seems prepares us for a longer period of low interest rates and, hence, in the US stock market has good growth potential: NASDAQ-100 and Dow Jones (YM) have already demonstrated a decent consolidation and therefore a correction could come today, but the medium-term says the prospect of further strengthening and, therefore, any pullback down — the ability to enter Long at more attractive levels.

Meanwhile, today the focus can switch to the UK and its stock market. Despite the relatively empty calendar, we see the speech of the Bank of England. Although the theme is not the monetary policy of the Central Bank, interesting comments can still sound. Especially considering more aggressive stance Mark Carney during a recent speech in which he made it clear that the next step is still increasing. Any discussion on this topic can undermine FTSE with the immediate goal at the level of 6890.

Commodities

Oil is still under pressure as we approach the report on commercial energy reserves in the United States. The last two weeks in a row index of the volume of oil in US stores hit record highs, and the market fears that today’s report will be no exception. Nevertheless, it is necessary to understand that the most negative scenario has already been included in the price, and therefore, the purchase of «factual» is not excluded even with really substantial growth stocks. If the indicator and does not make it to the expectations, then the chances of Brent growth will be even greater with the immediate goal at around 59.60 dollars. / Bbl. and further progress in the area of ​​60.80.

Foreign exchange market

The ruble was able to gain a foothold in the area of ​​62.60 at the close of trading on Tuesday, but after that oil prices have come under a new wave of sales that may well determine the opening of the medium pair USD / RUB «gap» up. Not ruled out another attack on a mark of 64.00, because in addition to the negative dynamics of the energy markets another factor pressure on the ruble remains uncertainty as to the further implementation of the «Minsk arrangements.» Withdrawal of troops while going very reluctant, new conflicts on the topic of gas supply, and comments of officials only reinforce doubts that the world still come. In addition, Britain’s decision to send troops to Ukraine and voiced by David Cameron willingness to expand sanctions against Russia is clearly not contribute to the growth of the ruble. It is likely the mark 64,00 is broken and the pair rush to the area of ​​65.10.

Твой выбор www.uklandlordinsurance.com

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Review of the world's major financial markets from February 24, 2015 | Web Trade For All - Forex trading, analytical reviews of the market and help for beginners