Market commentary: NASDAQ just 5.8% from all time high

US

Federal Reserve Chair Janet Yellen stated that the pace of economic data will decide when the US central bank will raise interest rates. Data in this sense points towards a rate increase by the end of this year. The market is not expecting a rate increase before June 2015.

Orders for U.S. business equipment such as machinery and electrical gear unexpectedly declined in October. Jobless claims increased by 21,000 to 313,000 in the week ended Nov. 22, the highest since early September, from 292,000 in the prior period. New homes in the U.S. sold at a slower pace than forecast last month.

U.S. consumer confidence climbed to a more than seven-year high in November as Americans’ views of their financial well-being improved heading into the holiday shopping season.

Wednesday’s session closed with the main indices in green territory. On the NASDAQ stock exchange 84 stocks reached a 52 week high. The NASDAQ last peaked in March 10th 2000, more than 14 years ago. The Index now stands just 5.8 percent shy of this peak. Once the index gets within 5 percent of its record and official countdown this historic milestone will start.

 Asia

Japan’s stock index slid 0.3 percent as the yen strengthened for a third day to trade at 117.64 per dollar.

South Korea’s index climbed 0.5 percent. Australia’s S&P/ASX 200 Index added 0.2 percent, while New Zealand’s NZX 50 Index slipped 0.1 percent.

China’s stocks rose to a three year high as the government further loosened monetary policy. Liquidity remains supportive for equities in China since the Peaple’s Bank of China lowered its lending rate and deposit rate last week. Analysts expect the bank to consider cutting reserve-requirements.

Europe

Angela Merkel signaled that Germany is ready for a long confrontation with Russia over Ukraine. Germany’s intention remains a sovereign and whole Ukraine. The language used by Merkel is the strongest to date and signals a re-mapping in German-Russian relationships.

Shares across Europe extended recent sharp gains, this morning, helped by growing expectations of further stimulus measures from the European Central Bank.

Commodities

Gold fell to the lowest level in a week as assets in the largest exchange-traded product backed by the metal shrank to the smallest in more than six years. Switzerland holds a national referendum on November 30 that would require the central bank to hold at least 20 percent of its assets in gold, all of which have to be stored in the country, and never sell any.

Polls last week showed a plurality of voters oppose the initiative, though a portion of them were still undecided. A yes vote may support the price of gold in the short-term.

Oil futures closed at the lowest level in more than four years amid skepticism OPEC ministers will cut supply. Surveys show that analysts are evenly divided on the decision by the Organization of Petroleum Exporting Countries.

Iron ore extended a retreat below $70 a metric ton to the lowest level in more than five years as global supplies of the steel-making raw material are poised to swell just as economic growth in China is slowing.

This article was issued by Calamatta Cuschieri, visit www.cc.com.mt for more information.

The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri & Co. Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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