Summary of Overnight News:
• The FTSE-100 will open sharply higher this morning subsequent last night’s powerful gains in New York, as dovish comments by Fed chairman Ben Bernanke and sliding oil costs allowed investors to place the crisis in the Middle East to 1 side and put a bit of blue on our screens to match the skies outside.
• US stocks surged greater on Wall Street last night after Federal Reserve Chairman Ben Bernanke reassured the marketplace with his view that economic growth appears to be moderating and inflation remains contained, traders noted.
• ‘Clearly we don’t want to tighten too much to trigger our economy to grow more slowly than its potential,’ Bernanke said throughout questioning just before the Senate Banking Committee.
• Investors interpreted Bernanke’s testimony being a sign the Fed is near to ending its streak of interest rate hikes, dealers added.
• The DJIA closed 212.19 factors greater at 11,011.42, its finest overall performance of 2006, while the Nasdaq ended up 37.49 points at two,080.71.
USA
Figures out Today:
13:30 US jobless claims (w/e 15/7) k Prev 332
13:30 CA wholesale product sales (May possibly) %m/m Prev 0.1
15:00 US leading indicators (Jun) percent Prev -0.6
17:00 US Philadelphia Fed (Jul) Prev 13.one
19:00 US Minutes of 29 Jun FOMC Meeting
• Yesterday’s 0.3% rise in the US June core CPI tipped the balance to an additional 25bp rate hike on 8 August. But a much less hawkish than expected and fairly noncommittal testimony from Chairman Bernanke added a fraction much more ambiguity towards the chance of an imminent rate hike, with the focus seemingly much more about the a bit longer phrase impact on inflation from moderating growth. His testimony, which gave strong boost to US and European share costs and Treasury bonds, came since the Fed released forecasts suggesting that it is prepared to bring US inflation down gradually, to minimise the damage to the genuine economy.
UK
Figures out Today:
09:30 Retail sales (Jun) %m/m Exp 0.a couple of Prev 0.5
09:30 Retail sales (Jun) %y/y Exp a couple of.7 Prev 4.0
09:30 PSNB (Jun) £m Exp 7000 Prev 6583
09:30 PSNCR (Jun) £m Exp 13000 Prev 16246
• UK retail sales (09:30) are forecast to possess edged up throughout June, by around 0.2%. General, the quarterly performance of the retail sector should have improved considerably in Q2 which should underpin tomorrow’s release for GDP, expected to possess grown 0.7% in Q2, inline using the MPC’s central projection.
Japan
Figures out These days:
06:00 JN BoJ Monetary Policy Minutes
EURUSD @ one.2590 GBPUSD @ 1.8435 GBPEUR @ 1.4640 USDJPY @ 116.85
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