Fundamental Analysis – 11/12/2015

Good Morning,

The S&P 500 index gained 5 points, or 0.23%, to 2,052, with eight of its 10 main sectors trading higher. Oil prices tumbled on Thursday, hovering near its lowest level in seven years, amid glut concerns despite a report showing U.S. crude inventories dropped last week. Gold traded in a slimmer range on Thursday and settled a tad lower as investors retain a cautious stance ahead of the Federal Reserve decisive meeting next week. United States Initial Jobless Claims above forecasts (269K) in December 4: Actual (282K). USDCHF is trading at 0.9881 while USDCAD is trading at 1.3628.

Inflation is likely to rise in the near term in the Euro area keeping the European Central Bank off the trigger of more easing. Bank of England decided to hold both its interest rate and amount of asset purchases on Thursday, where one MPC member recalled for an interest rate hike. The Swiss National Bank opted to keep its three month Libor rate at minus 0.7%. Mario Draghi, president of the ECB, argues on the contrary that the adoption of QE has been crucial in fostering the recovery in the euro area. EURCAD is trading at 1.4905 while EURGBP is trading at 0.7215.

As it is expected, the US Fed raises interest rates at its upcoming policy meeting; a generalized firming of USD is likely to push USDJPY higher over the coming months. Asian stocks slipped on Thursday as weak oil prices continued to feed global growth worries, while EUR held solid gains after a policy maker poured cold water on market expectations of more easing by the European Central Bank. GBPCHF is trading at 1.4970 while EURCHF is trading at 1.0806.

Daily Performances (4.00 am. GMT); 

I hope you all have a nice day.

All the figures are as at the writing time.