Fundamental Analysis – 08/10/2015

Good Morning, 

Canada building permits declined 3.7% in August. Global stock markets rose Wednesday, taking in stride the IMF's lower global growth forecast, as oil prices extended a rebound. The S&P 500 index closed 0.8% higher at 1,995, after earlier rising to within a whisker of the 2,000 mark, as healthcare stocks rebounded. The U.S. Senate overwhelmingly approved legislation on Wednesday that would allow the military to avoid mandatory spending cuts, setting up a likely veto from President Barack Obama, who is pushing for a broader budget deal. The Atlanta Fed now has 0.9% GDP growth in Q3 which will likely be too optimistic on top of EPS cuts recently by big brokers on S&P earnings for 2015 and 2016. Dow Jones Industrial Average DJIA, +0.73% added 122.10 points, or 0.7%, to 16,912.29. The NASDAQ composite outperformed as the iShares Nasdaq Biotechnology ETF (IBB) recovered recent losses with gains of 0.9%. USDCHF is trading at 0.9735 while GBPUSD is trading at 1.5315.

NZD rose to a six-week high, extending gains after another increase in milk product prices at the latest Global Dairy Trade auction, and higher commodity prices across the board. Between July and September we saw strong gains in the U.S. dollar and JPY. Yesterday we had the Bank of Japan express their confidence, once again, that the Japanese economy is recovering; they will be looking for some confirmation from this data point. Japan Current Account n.s.a. above expectations (¥1221B) in August: Actual (¥1653.1B). USDJPY is trading at 119.96 while USDCAD is trading at 1.3059.

FTSE ended at its highest closing level since August on Wednesday, buoyed by surging mining stocks while supermarket group Tesco also climbed after a smaller-than-expected plunge in profits. Volkswagen said on Wednesday it would take time to get to the bottom of its rigging of diesel emissions tests, hours before the carmaker is due to give updates on its findings to German regulators and U.S. lawmakers. United Kingdom RICS Housing Price Balance below forecasts (55%) in September: Actual (44%). United Kingdom Manufacturing Production (MoM) came in at 0.5%, above forecasts (0.3%) in August. United Kingdom NIESR GDP Estimate (3M) remains at 0.5% in September. EURUSD is trading at 1.1239 while AUDUSD is trading at 0.7202.

Daily Performances (00.00 am. GMT);

I hope you all have a nice day.

All the figures are as at the writing time.