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I'm Amy Anderson for the Optionally News Team Let's take a look at the global market highlights
and news that all traders and investors should be aware of.
Proctor and Gamble earnings disappoint The pound soars on upward revision in GDP
Gold poise to climb
Let's take a quick look at what is happening in the global markets now.
The S&P 500 finished just below the breakeven line, while the Dow also closed in the red,
as a slump in shares of Procter & Gamble weighed on the blue chip index. The company cut its
sales and earnings guidance for the year due to the devaluation of emerging market currencies.
The NASDAQ managed a fifth day in the rise, but the gain was slim. The modest moves follow
Tuesday's huge rally, sparked by the realization that the Federal Reserve's monetary policy
is unlikely to change much under new Fed chair Janet Yellen. US legislators avoided a potentially
disruptive budget showdown, voting to suspend the nation's borrowing limit until March 2015
without any policy conditions. Chinese exports jumped more than expected,
increasing 10.6 % to $207.13 billion, while imports were up 10 % at $175.27 billion according
to Chinese government data. While the data was promising following a wave of disappointing
Chinese indicators, some economists suggested they were driven by disguised capital flows
instead of real demand. European shares climbed Wednesday, following
strong gains on Wall Street and in Asia after United States Federal Reserve chair Janet
Yellen signaled that the central bank will continue on its current course of easy-money
policies even as it scales back its stimulus program.
In the UK, the FTSE 100 was 0.2 per cent higher after the Bank of England said the economy
will grow faster than previously expected this year.
In the foreign exchange market, the British pound surged to a near two-week high of $1.65-57
against the dollar, as the upbeat assessment from the BOE fueled expectations of a hike
in interest rates sooner than previously expected. The move came despite the central bank's reiteration
of its pledge that rates won't be rising for some time. The dollar gained ground and stayed
mostly solid around ¥102.50, following its overnight rise helped by closely watched congressional
testimony by Chairwoman Janet Yellen. The dollar slipped in Asia this morning ahead
of the release of US retail sales data seen as key to gauging the strength of the world's
biggest economy. The euro brought $1.36-10 and 139.25 yen after dovish comments from
an ECB board member.
Moving to the commodities market gold is poised to extend its 2014 rebound and reach fourteen
hundred dollars an ounce, the highest since September, according to technical analysis
from Citi Futures and RBC Wealth Management. Although Morgan Stanleys analysts see "more
pain to come" for gold investors. Gold is trading at $12-89.71.
Oil prices traded lower in Asian trade today, but losses were curbed on upbeat sentiment
over demand in the United States and China. West Texas Intermediate eased 18 cents to
$100.19 while Brent was down seven cents at $108.72.
This is Amy Anderson from OptionRally signing off. Follow me on Facebook and watch for our
new financial terms of the day and our weekly events news.