17 September 2014
# NZ Current Account
# BOE MPC Bank Rate Votes
# U.S. CPI
# U.S. NAHB Housing Market Index
# Fed FOMC Rate Statement
# Worries over the impending Scottish vote combined with a possible Fed change of tone (more hawkish) kept European shares on the back foot, the Stoxx600 falling 0.31% over the day. U.S. stocks rallied however, with the Dow closing just short of another new record, following a WSJ report that the Fed will continue to emphasise low interest rates at their Thursday morning announcement. The big board S&P500 rose 0.75% back close to the 2000 level.
# The USD fell after noted Fed watcher Hilsenrath of the Wall St Journal suggested the Fed might not remove the “considerable time” code words from its repertoire at tomorrow morning’s meeting. He felt the central bank might simply ‘qualify it”. The AUD was the major beneficiary gaining against the filed after a 4 cent fall over the last week or so. A strong bounce if IronOre prices no doubt further supporting the rally.
# The German ZEW survey of business confidence deteriorated again with the headline read coming in at 6.9 from August 8.6 whilst the ‘current conditions’ index showed a very sharp fall from 44.3 to 25.4, no doubt based on worries that the Ukraine situation is worsening an already fragile Eurozone economy. The headline figure was the lowest since December 2012 when the Eurozone crisis was in full bloom.
# UK inflation eased in line with forecast dropping from 1.6% to 1.5% as food and petrol costs declined. Core inflation, which strips out food, alcohol, tobacco and energy, notched up a 1.9% rate rise.
# The latest Fonterra GDT auction showed dairy prices little changed from a fortnight ago. Hopeful signs of stabilisation after a 45% fall year to date?
# It’s reported that China’s central bank has started a 500 billion yuan standing lending-facility to nation’s 5 biggest banks in response to the weak data of recent months.
# Copper futures jumped the most in 13 months, triggering a brief trading halt, as a report on increased government stimulus measures boosted prospects for demand in China, the world’s top metal user. Copper futures for December delivery rose 2.6% to close at $3.166 a pound triggering a “stop spike event,” and trading halted for 10 seconds. Trading across all contracts was an estimated 84,749, 70% more than the average in the past 100 days.
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