Indices: January proved to be cold not only in terms of weather but for the indices’ performance as well. The first month of 2014 saw the stock markets being in one of their worst shapes; however, February stepped in and witnessed some swift chart movements. The first three days of last week brought new losses to the major US indices, with the S&P500 reaching a 3-month low at 1,740, since mid-November. Friday’s labour data gave the necessary optimism to investors and a green wave flooded the markets. The S&P500 erased previous losses from earlier in the week, broke the 3-week decline, and closed on positive territory at 1,796 points, or a weekly rise by 0.84%. The Dow added 0.63% to its value, closing at 15,790, while the Nasdaq100 increased by 1.20% to 3,561.
The highly anticipated Q4 financial results by Twitter left shareholders and investors disappointed as they showed deepening losses and a slow user growth. Immediately after the data was announced, Twitter shares sank by over 24% while their weekly loss came at 15.89%, or $54.25 per share.
On the European stock market scene, chart movements were strongly influenced by the US economic data, and all major indices coloured in green. The best performance was recorded by France’s CAC40 which closed at 4,249, or an increase by 2.27%.
Forex
Forex markets movements were driven mainly by reports and press conferences of leading central banks. After the ECB left the interest rate unchanged at a record low of 0.25%, President Mario Draghi stated firmly that the bank is closely monitoring the economic situation in the Eurozone and is ready to act with measures in order to contribute to the positive development of the region.
Draghi’s words, combined with mixed US data, helped the EUR/USD rise by 152 pips for the week. The AUD/USD also experienced a serious increase of more than 200 pips. During the regular meeting of the Reserve Bank of Australia, it became clear that the main interest rate of the country will remain at 2.5%. On the other hand, the rising inflation is considered as a sign that future cuts in interest rate are currently out of the book and we can even witness a rise in the interest rate until the end of the year.
Commodities
Last week saw a rise in metals quotes. The price of gold increased by 1.82% to $1267 per troy ounce while silver added 4.46% to its value to close at $20.01 on Friday. US oil futures also registered an increase, climbing by 2.51% and closing just under the psychological level of $100 – at $99.93 per barrel.
What to expect this week?
Tuesday’s highlights will include Australia’s Home Loans for December, new Fed chairman Janet Yellen’s speech, and the Preliminary release of Japan’s GDP. Wednesday will reveal China’s Trade Balance, Bank of England Governor Carney’s speech, and ECB President Mario Draghi’s speech. Thursday’s main entries will be Australia’s employment data for January, Germany’s Consumer Price Index for January, and the US Retail Sales, also for January. Friday will show China’s Consumer Price Index for January (MoM and YoY), the Preliminary release of Germany’s GDP, and the Preliminary Release of the Eurozone GDP.
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