CMC Markets Weekly Report
Stocks in the U.S closed lower for a third session, as markets remain worried the Federal Reserve may start withdrawing stimulus by curtailing bond purchases later this year.
Stocks in the U.S closed lower for a third session, as markets remain worried the Federal Reserve may start withdrawing stimulus by curtailing bond purchases later this year.
The Dow Jones Industrial Average rose 8.60 points, or 0.06 percent, to close at 15303.10. The S&P500 shed 0.91 points, or 0.06 percent, to close at 1649.60 and the Nasdaq edged down 0.28 points, or 0.01 percent, to finish at 3459.14. The S&P had its biggest three-day drop in over a month.
Markets have become more cautious since Fed Chairman Ben Bernanke suggested the Fed could start slowing liquidity injections later in the year if the economic data improves enough to warrant it. But Foreman said the Fed won't change its position until the economic recovery firmly takes hold.
In economic news, U.S. durable goods order for April rose 3.3 percent after falling 5.9 percent in March.
In commodity markets, Global oil prices were narrowly mixed in cautious trade on Friday ahead of a three-day holiday weekend on both sides of the Atlantic.
New York's main contract, West Texas Intermediate (WTI) light sweet crude for July, closed off opening losses of more than a dollar, ending the day down 10 cents at $US94.15 a barrel.
In London, Brent North Sea crude for delivery in July settled at $US102.64 a barrel, a gain of 20 cents from Thursday.
Metals prices ended slightly lower on Friday. Gold for June delivery fell $US5.20 to $US1,386.60 an ounce. Other metals prices also fell. July silver fell 1.2 cents to $US22.496 an ounce and spot gold lost 0.4 percent to $US 1386.60 an ounce.
The US dollar against the Euro and commodity currencies in US trade on Friday. The Euro eased from highs near US$1.2990 to US$1.2910 before ending U.S trade near US$1.2930 and the Aussie dollar finished at US96.45c on Friday.
Making news this week, there is no major local economics news scheduled for today. Wednesday we can expect the CBA/HIA house affordability for the first quarter, Westpac leading index for March and the construction work done for the first quarter. Thursday it's ABS building approvals for April, private capital expenditure for the first quarter and Friday ABS private sector credit for April.
The US financial markets are today closed for Memorial Day holiday. The week kicks off on Tuesday with S&P Case-Schiller Home Prices for March followed by Q1 GDPO and pending home sales on Thursday. Friday rounds off the week with Personal Income for April, Chicago PMI and Consumer Confidence.
Frequently Asked Questions about this Article…
Markets turned cautious after comments that the Federal Reserve may start reducing stimulus later in the year. The Dow closed up slightly at 15,303.10 (+8.60 points, +0.06%), while the S&P 500 fell 0.91 points (‑0.06%) to 1,649.60 and the Nasdaq slipped 0.28 points (‑0.01%) to 3,459.14. The S&P posted its biggest three-day drop in over a month.
Ben Bernanke suggested the Fed could begin slowing liquidity injections later in the year if economic data improves, which made markets more cautious. The article also notes that Fed commentator Foreman said the Fed likely won't change policy until the economic recovery is firmly established.
US durable goods orders for April rose 3.3% after a 5.9% drop in March, showing a bounce in business spending data. Mixed data like this can influence expectations for Fed policy and help explain the cautious market tone described in the article.
Global oil prices were mixed. New York WTI light sweet crude for July closed down 10 cents at US$94.15 a barrel, while Brent North Sea crude for July rose 20 cents to settle at US$102.64 a barrel. Metals also ended slightly lower: June gold fell US$5.20 to US$1,386.60 an ounce and July silver eased to about US$22.496 an ounce.
The euro eased from highs near US$1.2990 to about US$1.2910 before ending U.S. trade near US$1.2930. The Australian dollar finished the session at roughly US$0.9645 (reported as US96.45 cents).
Yes — US financial markets were closed for the Memorial Day holiday mentioned in the article. The week’s market calendar resumes with data from Tuesday onward, including S&P Case‑Shiller home prices for March and other scheduled releases.
Key Australian releases listed include CBA/HIA house affordability (Q1), Westpac leading index (March), construction work done (Q1), ABS building approvals (April), private capital expenditure (Q1) and ABS private sector credit (April). For the US, look for S&P Case‑Shiller home prices (March), Q1 GDP, pending home sales, April personal income, Chicago PMI and consumer confidence later in the week.
The update shows markets are sensitive to Fed comments and economic data: talk of tapering stimulus has increased caution, even with some positive datapoints like the rebound in durable goods orders. Everyday investors may find it useful to monitor Fed communications and upcoming economic releases to understand short‑term volatility, while keeping broader goals in mind.
Call 1300 880 160
Start a chat
Schedule a call
