AM Analysis
The AUD/USD took a dive throughout the night
The AUD/USD took a dive throughout the night after the Private Capital Expenditure fell -5.2%, significantly lower than the forecasted figure of -1%. The Capex figures revealed that firms in the December quarter spent considerably less on plant, equipment and machinery, down 8.6%.
The USD rallied against the majority of its major counterparts throughout the night as tensions increase in Ukraine sending investors into frenzy for the ‘safe-haven’. Commodities took a slight hit due to the Federal Reserve and its stimulus cuts.
Royal Bank of Scotland has today reported an £8.2bn loss for 2013, the sixth annual loss for the bank. The 81% UK taxpayer owned bank reported a 15% drop in its bonus pool however they did see a £2.5bn operating profit excluding legacy costs and its bad bank.
Looking at the day ahead, investors are seeing a slightly lower opening on the FTSE 100 with Spreadex calling it down around 6 points. With a day full of economic data and speeches, alongside geopolitical happenings around the world, it looks to be a pretty volatile day for global markets.
German unemployment change, prelim CPI and import prices will be released this morning shortly followed by unemployment claims and core durable goods orders over in America. Federal Reserve chair, Janet Yellen, will testify before the Senate Banking Committee this afternoon; however investors aren’t expecting her to say anything to spook the markets.
– Sam Fox
PM Analysis
European markets continue to trade in negative territory
European markets continue to trade in negative territory, although rebounding from today’s lows, as tension in Ukraine weighs on the markets. Lawmakers in Crimea may vote on the status of the country after Russia ordered a series of surprise military exercises along its border with Ukraine late yesterday. Protesters in Crimea, a Black Sea peninsular attached to the rest of Ukraine, has become the last major stronghold of resistance to Ukraine’s new rulers. With the latest changes in Kiev, protesters and now trying to exploit the chaos and press demands for Russia to reclaim the territory.
Data from the US has shown that Core Durable Good Orders unexpectedly rose last month to 1.1% versus -0.1% expected. The suppressed increase reflected a surge in orders for computers and electronic products, fabricated metal products and defence capital goods. US jobless claims figures have shown that more Americans than forecast filed applications for unemployment benefits last week. Claims increased to 14,000 to 348,000 with many expected an increase of 334,000.
Federal Reserve Chair Janet Yellen will address the Senate Banking Committee in a semi-annual testimony about monetary policy later today. The appearance, which was meant to take place on February 13th, will hopefully give investors insight into how an unexpectedly harsh winter has impacted economic activity.
– Lee Mumford
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