Daily News Report

Markets in a Flash

• The JPY continues to look strong today. The JPY/USD continues its trend and is making new highs.
• The EUR/USD is trading just above the 1.3000 level. It has bounced of the resistance today and may possible go through as people abandon risk for the greenback.
• US equity futures are lower by over -1.0% this morning following the fall in worldwide markets.
• Commodities are mainly lower today. Oil is back down under the $80.00 mark, while people buy gold and push in up to above $1200.00.
• Asian markets fell over night. The Nikkei 225 finished down -2.70% while other indices were also lower.
• European equity markets are lower this morning. The Stoxx 50 is down -1.81%.

News focus

Fed Acknowledges Slowing Growth

After yesterday’s announcement from the Federal Open Market Committee’s meeting it shows that the slew of economic data suggesting slowing has been acknowledged. The Fed is set to continue using monetary policy as its weapon for stimulating the economy. Policy makers have decided to reinvest the proceeds from maturing debt securities. This will mean the feds balance sheet will remain at its current size instead of reducing.


Just Released

International Trade

Trade Balance Level

Previous $-42.3 B
Consensus $-42.5 B
Consensus Range $-46.2B to $-40.0B
Actual $-49.9 B

The international trade report shows the US’s trade gap. A negative figure shows that more money is leaving the country than is coming in. Today’s figure shows data for June. The figure is worse than expected and shows that the deficit is larger. This indicates that the US is doing worse than expected and is bearish for the US markets.

Coming up Today

1030ET – Petroleum Status Report

The weekly report by the Energy Information Administration provides data on US petroleum stocks. A reduction in stocks will show an increase in the demand for petroleum and may be taken as an indicator of an increase in spending. A low figure may put bullish pressure on oil prices and oil companies.

1400ET – Treasury Budget

Previous $-68.4 B
Consensus $-170.0 B
Consensus Range $-180.0 B to $-165.0 B

The monthly report shows the federal government’s fiscal deficit or surplus. This gives an indicator of how government spending is compared with government revenues. The result for July, released today, is expected to show that the fiscal deficit is increasing. A figure below consensus will show that either tax revenues are not as high as expected or spending is higher than expected, this would be bearish for the markets.