Positive Data Is Negatively Seen

Published by Filipe R. Costa on Wed, 15/08/2012 - 12:03
confused

Daily Market Commentary for August 15: European markets edged higher with FTSE rising 0.56% and the Dax 0.94%, but markets are up and down without a direction.

If we look at charts for the main equity indices we clearly see that moves have been erroneous in August, with markets going up and down in circles not really going anywhere. Movements are erroneous by a massive lack of liquidity and spread betters, as I have been stating, should be carefully and probably avoid this market. Any large rise or drop will likely be reverted but the moves in-between may lead to massive losses.

Economic data for the day was positive in the US, with retail sales rising 0.8 percent. The month of July was one of the best of the year but after a poor June it was not difficult to have an improvement. The rise was welcomed by equity traders that pushed the Dow higher but then movements were mixed along the day as PPI data pointed to a larger than anticipated increase and may anticipate a similar move in CPI tomorrow, decreasing the odds for QE3. If inflation picks up, the FED may avoid engaging in further asset purchases. Gold suffered the most as it suddenly dropped from $1,614 to $1,590 after economic data was released, even though it managed to recover part of the loss during the session.

Name Last price Close Price % 5-Day % YTD %
DAX (Xetra) 14/08/2012 6974.39 0.94 0.09 18.24
FTSE MIB 14/08/2012 14656.75 0.85 0.01 -2.87
IBEX 35 14/08/2012 7124.8 0.78 -1.2 -16.83
CAC 40 14/08/2012 3450.27 0.7 -0.09 9.19
USD/JPY - JPY per US$ 14/08/2012 78.83 0.61 0.32 2.52
FTSE 100 14/08/2012 5864.78 0.56 0.4 5.25
Crude oil (Light Sweet) Composite 14/08/2012 93.08 0.53 -0.26 -5.98
Dow Jones Industrial Average 14/08/2012 13172.14 0.02 0.03 7.81
EUR/GBP - £ per Euro 14/08/2012 0.7863   -0.87 -5.63
GBP/USD - US $ per £ 14/08/2012 1.5675 -0.01 0.41 0.93
S&P 500 14/08/2012 1403.93 -0.01 0.18 11.64
EUR/USD - US$ per Euro 14/08/2012 1.2324 -0.02 -0.48 -4.86
Nasdaq 100 Index 14/08/2012 2727.79 -0.03 0.39 19.75
Nikkei 225 15/08/2012 8925 -0.06 0.49 5.56
Gold (LBM) $ 14/08/2012 1601.2 -0.96 -0.69 2.19