08-23-2012, 06:34 PM
[B]Market Overview for Wednesday 22nd August 2012 [/B]
Currencies
The U.S. dollar suffered stinging losses on Wednesday, undermined by the U.S. Federal
Reserve saying it is willing to deliver more monetary stimulus "fairly soon" unless the economy improves considerably.
The euro hit $1.2538, its best level against the greenback since July 5 before dipping back to $1.2525; still up 0.44 percent on the day.
The U.S. dollar fell 1.05 percent to 78.50 yen its weakest in over a week. The dollar has been shunted lower from Monday's five week high.
The euro fell 0.62 percent against the yen to 98.28 yen, having hit a seven-week high on Tuesday.
The Australian dollar reversed course after the Fed's news, surging to a session high of $1.0517 against the U.S. dollar, a gain of 0.20 percent. The Aussie had plumbed $1.0409, just shy of a three-week low, earlier in the session.
Energy
Oil prices rose on Wednesday as indications the Federal Reserve is likely to provide more stimulus and a sharp drop in U.S. crude inventories countered concerns about Europe's debt crisis.
U.S. crude oil inventories fell 5.41 million barrels last week, according to a weekly report from the Energy Information Administration (EIA), much more than the anticipated drop of 400,000 barrels and providing a boost to crude futures.
Brent October crude rose 27 cents to settle at $114.91 a barrel, after recovering from a $113.53 low. The $115.27 session peak was below Tuesday's $115.58 intraday high.
U.S. October crude in front-month position after the September contract went off the board on Tuesday, rose 42 cents to settle at $97.26 a barrel, above the 200-day moving average of $96.74 and the highest settlement since May 7.
Precious Metals
Gold surged above $1,650 an ounce on Wednesday for the first time since early May, breaking above its recent trading range as minutes from the U.S. Federal Reserve convinced many bullion investors that another round of monetary stimulus is imminent.
Spot gold was up 1 percent on the day at $1,654.10 an ounce, after hitting a session high of $1,655.50, the highest price since May 2.
U.S. gold futures for December delivery settled down $2.40 at $1,640.50 an ounce. Trading volume was around 130,000 lots, sharply below its 30-day and 250-day averages
Platinum rose 2.2 percent to $1,533.24 an ounce.
Palladium climbed 1.7 percent to $630.47, while silver climbed 1.6 percent to $29.79 an ounce.
Stock Indices
The S&P 500 erased earlier losses to close flat on Wednesday after minutes from the latest Federal Reserve meeting indicated the central bank might be ready for another round of stimulus.
The Dow Jones industrial average dropped 30.82 points, or 0.23 percent, to 13,172.76.
The Standard & Poor's 500 Index added 0.32 of a point, or 0.02 percent, to 1,413.49.
The NASDAQ Composite Index gained 6.41 points, or 0.21 percent, to 3,073.67.
Volume was light with about 5.45 billion shares traded on the New York Stock Exchange, NYSE Amex and NASDAQ, below the daily average of 6.62 billion.
![[Image: yvanle_TR9_Spacer.png]](https://imgssl.constantcontact.com/letters/images/1101116784221/yvanle_TR9_Spacer.png)
Disclaimer & Risk Warning
Trading with financial instruments on margin carries a high level of risk, and may not be suitable for all investors. Trading with financial instruments is not suitable for an investor seeking an income since profits are not guaranteed. It is recommended to seek independent investment advice if necessary.
This communication is provided for information purposes only and no information contained herein constitutes a solicitation for the purpose of purchase or sale of any financial instrument, nor should it serve as the basis for any investment decision. Accordingly, Clients should consider that the communication and information contained herein, is not prepared in accordance with legal requirements designed to promote the independence of investment research, and is not subject to any prohibition on dealing ahead of the dissemination of investment research. Windsor Brokers Ltd does not guarantee the accuracy or completeness of any information or analysis supplied and shall not be liable to any client or third person for the accuracy of the information or any market quotations supplied through this service to a client, nor for any delays, inaccuracies, errors, interruptions or omissions in the furnishing thereof, for any direct or consequential damages arising from or occasioned by said delays, inaccuracies, errors, interruptions or omissions, or for any discontinuance of the service.
Currencies
The U.S. dollar suffered stinging losses on Wednesday, undermined by the U.S. Federal
Reserve saying it is willing to deliver more monetary stimulus "fairly soon" unless the economy improves considerably.
The euro hit $1.2538, its best level against the greenback since July 5 before dipping back to $1.2525; still up 0.44 percent on the day.
The U.S. dollar fell 1.05 percent to 78.50 yen its weakest in over a week. The dollar has been shunted lower from Monday's five week high.
The euro fell 0.62 percent against the yen to 98.28 yen, having hit a seven-week high on Tuesday.
The Australian dollar reversed course after the Fed's news, surging to a session high of $1.0517 against the U.S. dollar, a gain of 0.20 percent. The Aussie had plumbed $1.0409, just shy of a three-week low, earlier in the session.
Energy
Oil prices rose on Wednesday as indications the Federal Reserve is likely to provide more stimulus and a sharp drop in U.S. crude inventories countered concerns about Europe's debt crisis.
U.S. crude oil inventories fell 5.41 million barrels last week, according to a weekly report from the Energy Information Administration (EIA), much more than the anticipated drop of 400,000 barrels and providing a boost to crude futures.
Brent October crude rose 27 cents to settle at $114.91 a barrel, after recovering from a $113.53 low. The $115.27 session peak was below Tuesday's $115.58 intraday high.
U.S. October crude in front-month position after the September contract went off the board on Tuesday, rose 42 cents to settle at $97.26 a barrel, above the 200-day moving average of $96.74 and the highest settlement since May 7.
Precious Metals
Gold surged above $1,650 an ounce on Wednesday for the first time since early May, breaking above its recent trading range as minutes from the U.S. Federal Reserve convinced many bullion investors that another round of monetary stimulus is imminent.
Spot gold was up 1 percent on the day at $1,654.10 an ounce, after hitting a session high of $1,655.50, the highest price since May 2.
U.S. gold futures for December delivery settled down $2.40 at $1,640.50 an ounce. Trading volume was around 130,000 lots, sharply below its 30-day and 250-day averages
Platinum rose 2.2 percent to $1,533.24 an ounce.
Palladium climbed 1.7 percent to $630.47, while silver climbed 1.6 percent to $29.79 an ounce.
Stock Indices
The S&P 500 erased earlier losses to close flat on Wednesday after minutes from the latest Federal Reserve meeting indicated the central bank might be ready for another round of stimulus.
The Dow Jones industrial average dropped 30.82 points, or 0.23 percent, to 13,172.76.
The Standard & Poor's 500 Index added 0.32 of a point, or 0.02 percent, to 1,413.49.
The NASDAQ Composite Index gained 6.41 points, or 0.21 percent, to 3,073.67.
Volume was light with about 5.45 billion shares traded on the New York Stock Exchange, NYSE Amex and NASDAQ, below the daily average of 6.62 billion.
Disclaimer & Risk Warning
Trading with financial instruments on margin carries a high level of risk, and may not be suitable for all investors. Trading with financial instruments is not suitable for an investor seeking an income since profits are not guaranteed. It is recommended to seek independent investment advice if necessary.
This communication is provided for information purposes only and no information contained herein constitutes a solicitation for the purpose of purchase or sale of any financial instrument, nor should it serve as the basis for any investment decision. Accordingly, Clients should consider that the communication and information contained herein, is not prepared in accordance with legal requirements designed to promote the independence of investment research, and is not subject to any prohibition on dealing ahead of the dissemination of investment research. Windsor Brokers Ltd does not guarantee the accuracy or completeness of any information or analysis supplied and shall not be liable to any client or third person for the accuracy of the information or any market quotations supplied through this service to a client, nor for any delays, inaccuracies, errors, interruptions or omissions in the furnishing thereof, for any direct or consequential damages arising from or occasioned by said delays, inaccuracies, errors, interruptions or omissions, or for any discontinuance of the service.