Daily Financial Markets Report | Thursday, 10 July 2014

sacciDaily Financial Markets Report sources information from Business Day, Reuters, JSE Ltd and others.

Highlights

 The U.S. stocks closed modestly higher on Wednesday after the FOMC minutes revealed that policy-makers decided to end the Fed’s bond purchases by October if the economy stays on track. The Fed plans to end purchases altogether with a final reduction of $15 billion at its October meeting, after trimming it by $10 billion at each meeting up to that point, while keeping the rates near zero for a considerable time. Investors took that as a bullish sign and pushed prices higher. U.K. stocks posted some of the biggest losses in Europe on Wednesday as insurance firms headed sharply lower, leading the European benchmark index to a small drop for a fourth straight day.

 Spot gold is currently trading at US$ 1 330.50/oz. and platinum at US$ 1 514.90/oz. Brent crude oil is currently trading at US$ 108.10 per barrel.

 The US dollar is currently trading at 1.36 to the euro, 1.71 to the pound and will buy 101.49 Japanese Yen or 10.67 South African Rand.

International markets

The U.S. stocks closed modestly higher on Wednesday after the FOMC minutes revealed that policy-makers decided to end the Fed’s bond purchases by October if the economy stays on track. The Fed plans to end purchases altogether with a final reduction of $15 billion at its October meeting, after trimming it by $10 billion at each meeting up to that point, while keeping the rates near zero for a considerable time. Investors took that as a bullish sign and pushed prices higher. U.K. stocks posted some of the biggest losses in Europe on Wednesday as insurance firms headed sharply lower, leading the European benchmark index to a small drop for a fourth straight day.

The S&P 500 SPX gained 9.12 points, or 0.5%, to 1 972.83. The Dow Jones Industrial Average closed 79 points, or 0.5%, higher at 16 985.61. The Nasdaq Composite rose 27.57 points, or 0.6%, to 4 419.03.

The Stoxx Europe 600 index ended slightly lower at 339.96, after posting the biggest loss in four months on Tuesday. European benchmarks ended mixed on Wednesday, with both France’s CAC 40 index, up 0.4% at 4 359.84, and Germany’s DAX 30 index, rising 0.4% to 9 808.20, rebounding after the prior day’s sharp losses. The U.K.’s FTSE 100 index dropped 0.3% to 6 718.04, as insurers took a dive.

The Nikkei Average was down 0.26%, Hong Kong Hang Seng Index up 0.3% and the Shanghai Composite Index was up 0.1%. In Sydney the S&P/ASX 200 was up 0.2%.

The US dollar is currently trading at 1.36 to the euro, 1.71 to the pound and will buy 101.49 Japanese Yen or 10.67 South African Rand.

Domestic markets

On Wednesday the All-share index on the JSE was 0.63% lower at 51 282 points after reaching 52 000 earlier in the week, while the Top 40 index dropped 0.7% to 46 247 points.

Commodities

Spot gold is currently trading at US$ 1 330.50/oz. and platinum at US$ 1 514.90/oz. Brent crude oil is currently trading at US$ 108.10 per barrel.

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