Real-time Stock quotes, portfolio, LIVE TV and more.
Jun 20, 2012, 03.39 PM IST
All eyes are on the Federal Reserve's statement; street has been pricing in some form of easing today.
By Gautam Broker, Research Analyst at CNBC-TV18
**All eyes are on the Federal Reserve's statement; street has been pricing in some form of easing today.
Base case scenario appears to be an extension of operation Twist; Policy decision will be out at 12:30 pm EST (23 hours IST)
US markets ended higher on Fed Stimulus hopes on Tuesday; five shares advanced for every share declining, but volumes were light
US economic data was mixed while European data was weak particularly Germany.
US Housing starts came in weaker than expected at 7,08,000 as against consensus estimate of 7,22,000 that fell 4.8% month-on-month
However, building permits were better than expected at 7,80,000 versus consensus estimate of 7,30,000
German ZEW confidence index was down to -16.9 from 10.8 in May; current conditions declined at 33.2 versus 44.1
Spain pays a record 5.07% in the treasury bills auction that was higher by 200 basis points from last month
Also rumors that Germany is agreeing to use ESM, EFSF to buy Italian and Spanish bonds aid, but denied the same by Germany
Spain's 10-year bond yields fell below 7% now at 6.94%; Italy was below 6% at 5.88%.
European markets at close: DAX, FTSE and CAC were up 1.7%. Italy surged 3.4% and Spain gained 2.7%
Nikkei gained 0.8% and Straits Times was up 0.5%
Hang Seng moved up 0.4% and Kospi rose 0.3%
Taiwan Weighted was 0.2%.
SGX Nifty went up 0.3% to 5,135
Dollar was on the back foot on Fed stimulus hope
Euro gained 1% yesterday that hit a session high of 1.273 as against the US dollar
Dollar index was at 81.4 today as against around 82 yesterday
Australian dollar hit 1.5 months high at 1.02 to the US dollar
CRB Index rallied 1.3%, seeing best rise in 4 months on stimulus hope
Move was led by agriculture commodities
WTI crude ended up 1% above USD 84 a barrel
LME Copper was up 1% above USD 7600 per tonne
Brent crude settled down 0.2% to below USD 96 a barrel
Gold was hovering around USD 1620 an ounce
What to watch out for
UK Jobless Claims, Minutes of BoE Meet
EIA Inventory report
May 18 2013, 17:26
- in MARKET OUTLOOK
May 17 2013, 12:39
- in MARKET OUTLOOK