March 21, 2014 - Daily Latest News
Asset hot today: USD , CAD
The U.S. Federal Reserve decided to continue tightening the monetary policy meeting as it continued to improve working conditions . Reduced the current quantitative easing program by another $ 10 billion . Although there is no specific timeframe stated, Yellen also suggested that the Fed could start raising interest rates since April 2015 , which was a big surprise for the market . The news initially sent stocks lower , as they benefit from low interest rates that make borrowing money more attractive. The U.S. manufacturing index published by the Philadelphia Fed yesterday went above expectations and investors began to shake the rate hike as an improvement in the economy would boost corporate earnings . Accordingly, the shares rose the Dow Jones closed 0.67 % higher , the S & P 500 closed 0.60 % higher and the Nasdaq closed 0.27% higher. Asian stock markets also recovered and Hang Seng closed 1.21 % higher. The Nikkei , however, remained at 14,224.23 as the market remained closed for a public holiday . European markets opened on the rise as the shares recovered . Support was also found after a member of the ECB Executive Board , Lautenschlaeger said Thursday that rates will stay low or go even lower for an extended period .
WTI Crude oil is poised for a third weekly decline as the EIA reported that crude supplies rose to the highest level since November in the U.S. and increased production . Yellens comments that the Fed could raise interest rates as soon as next year also pushed prices down , as added support for the U.S. dollar. Gold has been a downward trend throughout the week . Following the gradual decline and the possibility that the central bank's stimulus program could end this fall have put pressure on the price . Fears over violence in Ukraine are also decreasing reducing the need for refuge assets . Traders should look out for key FOMC member speeches later in the day.
Today Main Events :
12:30 GMT : CAD - Core CPI - measuring changes in the price of goods and services , excluding food and energy .
12:30 GMT : CAD - Core Retail Sales - measures the change in the total value of retail sales in Canada , excluding automobiles
17:45 GMT : USD - FOMC Member Fisher speaks - because of a speech entitled " Facing Forward : fashion or future monetary policy " at the London School of Economics and Systemic Risk Conference in Political Science
20:30 GMT : USD - FOMC Member Kocherlakota speaks - Due participated in a panel discussion entitled " Transition and long-term challenges for monetary policy ," the International Research Forum in Washington DC
22:30 GMT : USD - FOMC member speaks Stein - Due to speak at the International Research Forum in Washington DC
