U.S equities produced significant gains on Thursday in the aftermath of weak inflation data via the Producer Price Index. Major currencies also gained against the U.S Dollar in forex. Today Consumer Price Index statistics will come from the States. China Trade Balance numbers were solid this morning.
Weak Inflation Results Spur U.S Dollar Selling, Wall Street Booms Upwards
Nervous sentiment on Wall Street was pushed to the side on Thursday, as investors proved bullish and took the three major indexes higher. The Dow Jones Industrials will open above the 25,570 level today. Consumer Price Index inflation numbers will be published today. Yesterday’s weak Producer Price Index figures helped soften the U.S Dollar. Investors may believe the weak inflation data could keep the Federal Reserve from being too aggressive.
China Trade Balance Solid, Hang Seng Continues to Add Value
Trade Balance numbers from China were positive this morning. The Shanghai Shenzhen and Hang Seng composites have continued to add value. The Hang Seng has gained more than 8 percent the past month. However, the Nikkei Index has remained under pressure as cautious selling has continued. The Yen has remained stronger against the U.S Dollar and is near the 111.25 juncture.
Euro and Pound Gain and Hold Ground, Positive European Industrial Data
While the European Central Bank’s Monetary Policy Meeting Accounts report was issued yesterday, the Euro was actually influenced more by the meek inflation data from the States which followed. The Euro and Pound climbed against the U.S Dollar rapidly and held onto their gains. European economic data continued to be positive too, as Industrial Production numbers proved solid.
Gold Surges Upwards on Thursday, Important Mid-Term Resistance Eyed
Gold managed another surge upwards on Thursday and the commodity is around 1330.00 U.S Dollars an ounce. The precious metal continues to attract traders and it could go into the weekend with plenty of power. Gold could test important early September highs near term if speculation builds.
Important Inflation Figures from States, U.S Spending Statistics Coming
The Consumer Price Index will get plenty of attention from traders when it is released in the U.S at 13:30 GMT.
- 13:30 PM GMT U.S., Consumer Price Index
- 13:30 PM GMT U.S., Retail Sales