US markets recover in late trade on stimulus hopes

By Gautam Broker, Research Analyst at CNBC-TV18

The US equity markets recovered in late trade on Wednesday on hopes on Fed stimulus. Federal Open Market Committee (FOMC) minutes indicated increasing support for additional easing yesterday. FOMC Minutes “Many members judged that additional monetary accommodation would likely be warranted fairly soon." “Participants also exchanged views on the likely benefits and costs of a new large-scale asset purchase program.” “Many participants expected that such a program could provide additional support for the economic recovery.” Greek uncertainty continues despite Greek PM meeting with EU policy makers Junker post meet with Samaras says Troika review needed before any decisions. German Chancellor Angela Merkel indicated no decision likely in tomorrow’s meeting with Greek PM and will wait for Troika report. US existing homes sales for July increased 2.3% MoM to 4.47 million, which was mildly below consensus of 4.5 million. But other indicators were positive, median prices were up 9.4% in July as against 7.5%; inventory was at 6-month as against 6.3-month. Investors should watch out for China's HSBC Flash PMI for August. July reading was stood at 49.3. US markets at close: Dow Jones declined 0.2% to 13,172.8 while S&P 500 Index was up 0.02% at 1,413.5 and Nasdaq Composite gained 0.2%. European markets at close: DAX fell 1.01% and CAC was down 1.5% while FTSE lost 1.4%. Spain tanked 2.7% and Italy slipped 1.1%
  
Currencies Euro was at a 7-week high post FOMC minutes. Euro hit a high of 1.2545 to the US dollar today morning as against 1.24 level yesterday. Dollar index was at a 2-month low of 81.4 today morning Yen was at 78.6 to the US dollar today as against 79.3 yesterday. Commodities EIA says inventories went down by 5.4 million barrels as against expectations of 4,00,000 barrels. Crude oil was marginally up; WTI crude gained 0.5% at USD 97.2 a barrel. Brent hit a session high USD 115.2 a barrel yesterday. Gold was in rally mode on dollar weakness and stimulus hopes What to watch out for Germany Q2 GDP Germany Trade Data (Import, Export) Germany, France, EZ PMI’s  US Jobless Claims US Markit PMI US New Home Sales, Price Index