Sunday, November 2, 2014

When The Dow Jones Made History

Daily Financial Review 7.7.2014

The Dow Jones makes history and is traded above 17000 points

The reports season for the second quarter of 2014 will open this week when the indexes in Wall Street are making new records.
The main question is if the company profits will justify the ascent, statistics published by the U.S department of labor on Thursday pointed at a larger than expected addition to the job market of 228 000 to the labor market in June, and a descent in the percentage of unemployment to 6.1%. According to economists’ estimates, the second quarter reports might surprise for the better. Analysts who participated in Reuters’ survey foresaw a growth of 6.2% in company profits in the S&P 500 in the second quarter.

The trade week in the Far East opened in slight decreases, the Shanghai stock market went down 0.34%. Christine Legarde, managing director of the International Monetary Fund says that she does not see a big decrease in china and the world economy is going to get stronger in the second half of this year and 2015.

In the products market oil continues to arouse a lot of interest because of the geopolitical state in the Middle East. The price for crude oil per barrel decreased in the last trade day to 103.77$ per barrel. Last month the price was 107.65$ per barrel.

Pound – Dollar (GBP/USD)

The pound, that made the biggest increase since the beginning of the year continues to strengthen relative to the dollar this past week and broke the 5 year high record. We foresee the continuation of the strengthening of the pound relative to the dollar towards 1.735 with an option to fix up until 1.678

Economic statistics for today:

09:00 – monthly industrial produce - Germany

15:30 - monthly building permits - Canada

17:00 - The purchasing managers’ index - Canada