CMC Markets Weekly Report
U.S. stocks on Friday mostly gained, cutting weekly losses, as investors remained cautious before a Federal Reserve policy meeting this week that should shed light on the central-bank's plans for its asset-purchasing program.
U.S. stocks on Friday mostly gained, cutting weekly losses, as investors remained cautious before a Federal Reserve policy meeting this week that should shed light on the central-bank's plans for its asset-purchasing program.
The Dow Jones Industrial Average climbed 15.93 points, or 0.1 per cent, to 15,755.36. The S&P500 ended fractionally lower to close at 1,775.32 and the Nasdaq rose 2.57 points, or less than 0.1 per cent, to 4,000.98.
In economic news, producer prices fell by 0.1 per cent in November with the core rate up 0.1 per cent, which was in line with expectations.
Slightly stronger employment numbers over the last four months, elevated consumer confidence and rising home prices all argue in favour of the Fed beginning to scale back on its $85 billion in monthly bond purchases sooner rather than later.
In commodity markets, oil prices are mixed as Libya was expected to begin exporting more crude into a market. On the New York Mercantile Exchange on Friday, West Texas Intermediate crude for January delivery fell 90 US cents to $US96.60 a barrel. In London, Brent North Sea crude for January finished 16 US cents higher at $US108.83.
Gold futures rebounded with gold for February delivery, the most-actively traded contract, on Friday rose $US9.70, or 0.8 per cent, to settle at $US1,234.60 a troy ounce on the Comex division of the New York Mercantile Exchange. During the week, the contract gained 0.4 per cent.
Copper futures closed a touch higher on London Metal Exchange (LME). At the PM kerb close on Friday, LME three-month copper was up 0.4 per cent at $US7,254.50 a metric ton. Aluminium was 0.5 per cent higher at $US1,799 a ton.
The Australian dollar is higher, as it goes into stabilisation mode after falling 1.5 per cent last week. At 0700 AEDT on Monday, the local unit was trading at 89.61 US cents, up from 89.27 cents on Friday.
Ahead in Australia, while there is no major economic news to be released, the US can expect the Empire State manufacturing index together with the flash purchasing manager�s index and revised productivity data. All eyes will however, be on the US Federal Reserve when it meets for its last policy meeting of the year on Tuesday and Wednesday (US time).
The meeting is expected to provide some clarity on the timeline for a potential reduction in the Fed's asset-purchase program.
Frequently Asked Questions about this Article…
U.S. stocks mostly gained on Friday, helping to cut weekly losses. The Dow Jones Industrial Average climbed slightly, while the S&P 500 ended fractionally lower, and the Nasdaq saw a small increase.
Stronger employment numbers, elevated consumer confidence, and rising home prices are key indicators that might influence the Federal Reserve to scale back its $85 billion monthly bond purchases sooner rather than later.
Oil prices are mixed, with West Texas Intermediate crude for January delivery falling slightly, while Brent North Sea crude saw a minor increase.
Gold futures rebounded, with the most actively traded contract rising by 0.8% to settle at $1,234.60 a troy ounce. Copper futures also closed slightly higher on the London Metal Exchange.
The Australian dollar is stabilizing after a recent fall, trading higher at 89.61 US cents as of Monday morning.
Investors should keep an eye on the Empire State manufacturing index, the flash purchasing manager’s index, and revised productivity data from the U.S.
The Federal Reserve meeting is significant because it is expected to provide clarity on the timeline for a potential reduction in the Fed's asset-purchase program.
In commodity markets, oil prices showed mixed results, gold futures rebounded, and copper futures closed slightly higher, indicating varied performance across different commodities.
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