{"id":62388,"date":"2014-10-23T05:10:43","date_gmt":"2014-10-23T09:10:43","guid":{"rendered":"http:\/\/countingpips.com\/?p=62388"},"modified":"2014-10-23T10:12:04","modified_gmt":"2014-10-23T14:12:04","slug":"us-markets-decline","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/10\/us-markets-decline\/","title":{"rendered":"US markets decline"},"content":{"rendered":"
October 23, 2014<\/div>
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By IFCMarkets<\/a><\/p>\n

Stock markets in US recorded modest gains in the morning trading session on Wednesdays but retraced later in the trading day. The S&P 500 snapped a four-day winning streak by falling 14.17 points, or 0.7% to 1,927.11. The Dow Jones Industrial Average<\/a> lost 153.49 points, or 0.9%, to 16,461.32, dragged down by big declines in Boeing Co. The Nasdaq Composite fell 36.63 points, or 0.8% to 4,382.85. Boeing shares fell 4.5% despite beating profit expectations. Yahoo Inc. shares rose 4.5%, after the online search provider posted better-than-expected third-quarter results late Tuesday. Investor nervousness might be explained by news of shots fired at the Canadian Parliament building in Ottawa, and the sole economic news of the day of modest gain in consumer price index in September wasn\u2019t enough to boost investor confidence. The report of US Bureau of Labor Statistics showed US consumer prices rose slightly in September owing to higher costs for food and housing, but inflationary pressures continue to be held in check by falling energy expenses. The increase was in line with expectations. Today a number of economic indicators will be released. At 9:30 CET Markit releases German Manufacturing and Services PMI advance reports for October, the tentative outlooks are positive. At 10:00 CET advance Manufacturing and Services PMIs for EU for October will be released, tentative outlook is positive. At 11:30 Retail Sales will be published in UK, the outlook is positive. At 14:30 Continuing Claims and Initial Jobless Claims for weeks ended October 11 and 18 will be published in US, the tentative forecasts are positive and negative respectively, and at 15:45 CET Markit\u2019s Manufacturing PMI advance report for October will be published.<\/p>\n

\"Dow<\/p>\n

European markets rose on Wednesday building on the previous day\u2019s momentum after investor confidence was boosted by news reports the European Central Bank is considering buying corporate bonds to further stimulate the Eurozone economy. The trading was uneven and the markets moved briefly into the negative zone in midmorning trading after the Spanish news agency Efe reported that at least 11 banks will fail the ECB\u2019s stress tests. The results of the tests are due on Sunday. The euro fell after the news. Investors\u2019 optimism spurred by news of ECB expansion of monetary stimulus program outweighed the uncertainty about the ECB banks stress tests and markets resumed the advance. France\u2019s CAC 40 index rose 0.6% to 4,105.09. Germany\u2019s DAX 30 index climbed 0.6% to 8,940.14. The U.K.\u2019s FTSE 100 index added 0.4% to end at 6,399.73.<\/p>\n

Prospects of additional stimulus programs by the European Central Bank and the steady growth of China\u2019s economy as evidenced by the latest reports of nation\u2019s statistics office buoyed investor optimism in Asia and propelled the stock markets. Nikkei gained 2.4% on Wednesday, recovering from a 2% drop in a previous session, after reports showed the country\u2019s export increased 6.9% from a year earlier in September. Falling yen contributed to this surge, as well as increased shipments of components for Apple\u2019s new smartphone. The Hang Seng Index rose 1.2% Wednesday after the government and leaders of protesters conducted official talks for the first time on Tuesday which didn\u2019t result in an agreement how the city\u2019s chief executive should be elected. Australia\u2019s S&P\/ASX 200 and Korea\u2019s Kospi advanced 1.1% each.<\/p>\n

After the US Energy Information Administration reported yesterday that crude stockpiles expanded 7.1 million barrels last week, more than expected, West Texas Intermediate<\/a> for December delivery in electronic trading on the New York Mercantile Exchange dropped $1.97 to $80.52 yesterday, the lowest close for a front-month contract since June 28, 2012. It was at $80.62 a barrel in electronic trading on the New York Mercantile Exchange, up 10 cents, at 2:55 p.m. Singapore time. The volume of all futures traded was about 26 percent above the 100-day average. Prices have decreased 18 percent this year. Brent<\/a> was steady in London. As oil is getting a downward push due to the expanding production and trailing demand, Libya\u2019s OPEC governor called for output cut. Venezuela earlier had requested a special meeting to discuss measures to boost the price. Saudi Arabia and Kuwait have signaled that the fall in oil prices doesn\u2019t warrant immediate production cuts. OPEC, responsible for about 40 percent of the world\u2019s crude supply, is scheduled to meet on Nov. 27 in Vienna.<\/p>\n

Expectations of drier weather in US and rain in Brazil have reversed the recent soybeans upward trend. The improved weather will allow US farmers to accelerate harvesting of a record crop, and rain in Brazil boosts the outlook for production. The contract for November delivery dropped as much as 0.7 percent to $9.56 a bushel on the Chicago Board of Trade and were at $9.6125 by 2:30 p.m. in Singapore. Corn for December delivery fell as much as 0.4 percent to $3.515 a bushel and was at $3.525. Wheat for delivery in December lost 0.3 percent to $5.2075 a bushel.<\/p>

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\"SOYB\"<\/p>\n

Market Analysis provided by IFCMarkets<\/a><\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets Stock markets in US recorded modest gains in the morning trading session on Wednesdays but retraced later in the trading day. The S&P 500 snapped a four-day winning streak by falling 14.17 points, or 0.7% to 1,927.11. The Dow Jones Industrial Average lost 153.49 points, or 0.9%, to 16,461.32, dragged down by big […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-62388","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/62388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=62388"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/62388\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=62388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=62388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=62388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}