Daily review 01/08/12
Asian stock markets trade is conducted today (Wednesday) in a negative trend on the background of the negative closing on Wall Street last night and towards the meeting between the ECB and U.S. Federal Reserve.
China published weak manufacturing data this morning.
Investors in the Far East, like their counterparts around the world waiting to hear the ECB chairman Mario Draghi and Federal Reserve Chairman Ben Bernanke statement about possible courses of action to take to restrain Governors global slowdown.
Today's the Fed open market conference (FOMC) expected to publish the interest rate for August, and many hope that at the same time Chairman Bernanke will announce the third bond purchases program (QE3), in light of the slowdown in growth in the U.S. (1.5% in the second quarter, annual rate), and deteriorating housing markets and local employment in the country.
Chinese manufacturing index (PMI) fell in July to -50.1 points versus 50.2 points in June.
Analysts predicted a rise to -50.4 points.
Recall that any reading above 50 points means the economic expansion.
In Europe, investors continued to hope for an official announcement of the ECB on purchases of government bonds of debt ridden countries, Italy and Spain.
Following the chairman Draghi statement last week that he will do everything to keep the entire Eurozone .
Yesterday, a report published in Spain (one of two) which detailed the amount of aid the country's banks need, which are expected to receive up to about 100 billion euros in external financial rescue package approved by the Government.
Yesterday was published the Eurozone unemployment rate for June, prescribed an increase to a new high - 11.2%, the highest since the establishment of the Eurozone.
DOW 0.49%↓ S&P 0.43%↓ NSDQ 0.21%↓
EUR / USD:
EUR/USD trading at 1.2312 an increase of 0.09% in writing.
The pair may find support at 1.2224 Monday low and resistance at- 1.2388 Friday high.
Meanwhile, the Euro gain strength against the British Pound and against the Japanese Yen, when the -EUR/GBP add a 0.12% to 0.7854 and –EUR/JPY add 0.03% to 96.12.
The British Pound weakens against the U.S Dollar today, trading at 1.5669 a decrease of 0.06%.
The pair may find support at 1.5624 Tuesday low and resistance at 1.5728 Tuesday high.
Meanwhile, the British Pound weakens against the Euro and against the Japanese Yen, while the EUR/GBP add a 0.12% to 0.7854 and the GBP/JPY drop 0.04% to 122.39.
The U.S Dollar weakens against the Canadian Dollar today, trading at 1.0015 a decrease of 0.15%.
The pair may find support at 1.0002 Tuesday low and resistance at 1.0051 Monday high.
Meanwhile, the U.S Dollar weakens against the Euro and gain strength against the British pound, while the EUR /USD add 0.09% to 1.2312 and the GBP/USD drop 0.06% to 1.5669.
WTI- Crude Oil:
The WTI gain strength today, trading at 88.27 an increase of 0.34%.
May find support at 87.29 Tuesday low and resistance at 90.81 Monday high.