Daily Market Outlook from ACFX 09/10/2013
◾EUR/USD The dollar traded at almost its
lowest level this month as the U.S. weighs a plan to confiscate
Syrian chemical weapons that may diffuse a potential military
strike, reducing demand for haven assets.
◾The yen dropped 0.7 percent to 132.85 per euro after sliding to the weakest
since May 22. Japan’s currency fell 0.7 percent to 100.27 per dollar after
depreciating to the least since July 25. The euro was little changed at $1.3248.
◾AUD/USD The Aussie may climb toward 93.07 U.S. cents if it can
breach key resistance levels after rallying twice last month
from about 89 cents, forming a so-called double-bottom base,
according to Junichi Ishikawa, a Tokyo-based analyst at IG
Markets Securities Ltd. The currency traded at 92.57 U.S. cents
as of 4:50 p.m. in Sydney.
◾The Aussie, the world’s fifth-most-traded currency, reached
a three-year low of 88.48 cents on Aug. 5. Its 8.1 percent drop
in 2013 is the second-biggest decline among 10 developed-market
currencies tracked by Bloomberg Correlation-Weighted Indexes,
trailing only the yen’s 10 percent plunge.
◾USD/CAD The Canadian dollar remained higher
as housing starts were 180,291 at a seasonally adjusted annual
pace in August, at almost the 2013 monthly average in another
sign the economy is strengthening.
◾The loonie, as the Canadian dollar is known for the image of the aquatic
bird on the C$1 coin, rose 0.3 percent to C$1.0335 per U.S. dollar at 8:38 a.m.
in Toronto, the highest level since Aug. 19. One loonie buys 96.76 U.S. cents.
◾Oil West Texas Intermediate dropped a second day after reports that Syria
agreed to a Russian plan to surrender its chemical weapons, easing concern
of a U.S. attack that may escalate the conflict and cut Middle Eastern exports.
◾WTI for October delivery slid as much as $2.24 to $107.28 a barrel in electronic
trading on the New York Mercantile Exchange, the lowest since Sept. 5, and was
at $107.38 as of 1:43 p.m. London time. The volume of all futures traded was
about 40 percent above the 100-day average
◾Brent for October settlement decreased as much as $1.91, or
1.7 percent, to $111.81 a barrel on the London-based ICE Futures
Europe exchange. That’s the lowest since Aug. 27. The European
benchmark was at a premium of $4.53 to WTI. The spread was $4.20
yesterday, the narrowest since Aug. 19.
◾Gold fell in New York as Russia’s bid to get Syria to put its chemical weapons
under international control cut demand for a protection of wealth. Silver dropped
and palladium traded near a two-month low.
◾Bullion futures reached a three-month high of $1,434 an
ounce on Aug. 28 amid concern the U.S. will attack Syria for its
alleged use of chemical weapons against civilians. Syria
accepted Russia’s proposal on its weapons, Syrian Foreign
Minister Walid al-Muallem said today during a trip to Moscow.
◾Asian stocks rose, extending the
longest rally in the benchmark index this year, as China’s
industrial production and retail sales beat estimates, adding to
signs the world’s second-largest economy is rebounding.
◾The MSCI Asia Pacific Index advanced 1.2 percent to 137.2
as of 7:28 p.m. in Tokyo, capping a ninth day of gains and the
highest close since July 23. The gauge last week posted its
biggest weekly advance since April on signs the global economy
is recovering. Reports today showed factory output in China
accelerated by 10.4 percent in August from a year earlier, while
retail sales increased 13.4 percent, exceeding economist
◾European stocks rose to a three-month high as Chinese economic data
beat estimates and the U.S. offered to defer an attack on Syria if it complied with a
Russian proposal to give up chemical weapons. U.S. index futures
and Asian shares also climbed.
◾The Stoxx Europe 600 Index added 1.1 percent to 309.33 at 12:02 p.m. in London,
for its highest level since May 28. The gauge closed little changed yesterday after a report
showed Chinese exports rose more than expected and investors awaited a U.S. decision
this week on possible air strikes against Syria. Standard & Poor’s 500 Index futures
gained 0.5 percent, while the MSCI Asia Pacific Index climbed 1.2 percent.
◾U.S stocks climbed, extending the longest winning streak for the Standard & Poor’s 500
Index since July, as data showed China’s economy is improving amid signs of easing tensions over Syria.
◾The S&P 500 advanced 0.5 percent to 1,679.91 at 9:48 a.m. in New
York. The index has gained for six straight days, the most since July
15. The Dow rose 76.55 points, or 0.5 percent, to 15,139.67 today.
Trading in S&P 500 stocks was 45 percent higher than the 30-day
average at this time of day.