Markets Are Not Going Anywhere

Published by Filipe R. Costa on Wed, 15/08/2012 - 22:37
directionless

Daily Market Commentary for August 16: It was another boring day for investors and in special for spread betters that can’t find a way of making money out of this market. After five sessions, things are at the same point they were.

The FTSE has dropped 0.22% in five sessions, while the Dow is down 0.08% and the Cac up 0.32%. The latest sessions have been boring and leading equities nowhere as investors are waiting for September.

Standard Chartered, the second largest UK bank, has agreed to pay to the New York regulator $340m in a hefty fine for money laundering. Well, in fact, it was not for money laundering, but just for conducting business with Iran, a US sanctioned country. According to the regulator, StanChart engaged in 60,000 illegal transactions amounting to $250bn. After many discussions and political intervention the bank put an end in the matter to see its shares recover. Most likely other regulators will try to get something too, but at least, the bank has the guarantee of not losing its license to operate US dollars. Shares were up in the day and have recovered most of the lost value.

Economic data in the US gave some inspiration to investors as CPI numbers came softer than expected. Instead of rising 0.2%, CPI was flat for the month. The news helped gold and increased the likelihood for FED intervention. If Bernanke wants to follow with another round of monetary easing, at least he has CPI under control for now. Industrial production was reported growing 0.6%, slightly better than expected but the Empire State index showed a contraction. Orders are contracting in New York, pointing to weakness in the manufacturing sector.

Name Last price Close Price % 5-Day % YTD %
FTSE MIB 14/08/2012 14656.75 0.85 0.01 -2.87
Crude oil (Light Sweet) Composite 15/08/2012 93.76 0.73 0.53 -5.29
Nasdaq 100 Index 15/08/2012 2735.47 0.28 0.79 20.09
GBP/USD - US $ per £ 15/08/2012 1.5699 0.15 0.22 1.09
Gold (LBM) $ 15/08/2012 1603.3 0.13 -0.65 2.32
S&P 500 15/08/2012 1405.53 0.11 0.24 11.76
USD/JPY - JPY per US$ 15/08/2012 78.88 0.06 0.6 2.59
IBEX 35 15/08/2012 7128.9 0.06 -0.3 -16.78
CAC 40 15/08/2012 3449.2 -0.03 0.32 9.16
Dow Jones Industrial Average 15/08/2012 13164.8 -0.06 -0.08 7.75
Nikkei 225 15/08/2012 8925 -0.06 0.49 5.56
EUR/USD - US$ per Euro 15/08/2012 1.2287 -0.3 -0.69 -5.15
DAX (Xetra) 15/08/2012 6946.8 -0.4 -0.28 17.78
EUR/GBP - £ per Euro 15/08/2012 0.7827 -0.46 -0.89 -6.06
FTSE 100 15/08/2012 5833.04 -0.54 -0.22 4.68