Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

After Early European Weakness, Stocks Close Flat

By

Today's financial recap and tomorrow's financial outlook.

PrintPRINT
European equities were lower this morning after the Bank of England announced in its quarterly inflation report that it was downgrading its economic and inflation outlook due to external weakness. The central bank only sees inflation around 1% during 2015, which would imply a lower rate path than it has discussed in the past. The Italian FTSEMIB fell by 2.87% and was the worst performing global equity index. UK Gilts also rallied, supporting US Treasuries.

US equities opened lower in sympathy to the weakness in European stocks. The selloff was led by utilities, a defensive sector that has led over the past few weeks. The S&P 500 (SPX) sector was down 2% versus a near unchanged finish for the broader index. The news that Russian combat troops had entered eastern Ukraine spooked stocks, but that did not persist for the remainder of the session.

Crude oil continued to suffer today and the price of Brent fell below $80 per barrel for the first time since September 2010. The US dollar was higher due to the weakness in the British Pound, which fell 0.83% as the new economic outlook pushed the first rate hike by the Bank of England out even further into 2015, and possibly even 2016. The weekly government supplies report was delayed from its usual time today, to tomorrow.

US, UK, and Swiss regulators announced that they have ordered five major banks to pay fines totaling $3.3 billion for illegal rigging of FX. These fines have been long expected and the group of banks had collectively set aside $5.3 billion for the probe. Of the five banks that were named, JPMorgan (JPM), Citigroup (C), and Royal Bank of Scotland (RBS) underperformed the market in today's session.

Tomorrow's Financial Outlook

The major economic report scheduled for tomorrow is the weekly jobless claims. Over the past four weeks, claims have averaged 280K, which is the lowest in decades. Also scheduled to be released is the monthly Treasury budget statement and JOLTS job openings from September. Janet Yellen is scheduled to give the welcoming remarks from a prepared text at an ECB/Fed conference at 11:45am ET. She will not take questions.

Overnight is a pair of significant economic reports from China. October retail sales, fixed asset investment, and industrial production will be released. Growth is expected to remain the same as the prior month. Separately, the final reading of German October inflation and the ECB's monthly financing report will be reported.

Earnings reports from major companies are due out from Kohl's (KSS), Wal-Mart (WMT), Nordstrom (JWN), Applied Materials (AMAT), Viacom (VIA).


Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE