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Equities Turning Cautious as Fed Approaches, Gold Under Pressure

December 13
13:07 2017

U.S stock markets gained on Monday, but early trading in Asia today has become cautious as central bank pronouncements from the Fed, ECB, and BoE approach. Important inflation data will come from the States and U.K today. The U.S will see the Producer Price Index.

Dow Jones Industrials Up 4 Percent Past Month, U.S Inflation Numbers

Traders could not be faulted for believing Wall Street has been rather tentative the past few weeks of trading, but the Dow Jones Industrials has still achieved a gain of over 4 percent the past month. And the S&P has gained more than 3 percent in the same span. Today Producer Price Index numbers will come from the States and be looked at carefully, this will serve as a precursor to the Fed’s monetary policy statement tomorrow which will get the attention of global investors.

Japanese Data Lackluster, Risk Appetite Buoyant in Asia

The Nikkei Index has stumbled this morning and the Hang Seng composite has also lost ground. Yesterday’s strong equity gains have not been able to sustain themselves, as investors are beginning to go into a wait and see approach as they anticipate the central bank presentations which lay ahead tomorrow and Thursday. The Tertiary Industry Activity data from Japan today was positive. The Yen has seen consolidated range trading against the U.S Dollar.

Mixed Results for European Equities, German Economic Sentiment Survey

European equities were not able to mirror their global counterparts on Monday as mixed trading was produced. The Footsie put in a solid day of gains, but the Dax saw moderate selling. An important Inflation number will come from the U.K, and Germany will see an Economic Sentiment reading today. However, traders are certainly looking ahead to the Bank of England and European Central Banks pronouncements on Thursday. The Pound continues to trade in a choppy fashion against the U.S Dollar.

Gold a Focal Point for Traders, Inflation Discussion an Impetus

Gold continues to experience selling pressure and is buttressed against important support near 1244.00 U.S Dollars an ounce. The precious metal will become a focal point for traders the next few days as global central banks discuss their inflation outlooks.

Inflation Data from U.K and U.S, Mario Draghi Speaking in Frankfurt

The Consumer Price Index reading from the U.K at 9:30 GMT will provide interesting data for investors.

  • 9:30 AM GMT U.K., Consumer Price Index
  • 13:30 PM GMT U.S., Producer Price Index
  • 19:00 PM GMT E.U., ECB President Draghi Speaking

Yaron Mazor is a senior analyst at SuperTraderTV.

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This article was originally posted on FX Empire

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