October 2013

European Shares Declines as Fed Keeps QE Unchanged

European shares opened lower on Thursday after the Federal Open Market Committee (FOMC) decided to leave its $85bn-a-month asset-purchasing program unchanged for now.

The Euro Stoxx 50 declined 0.29% lower at 3,031.75 at the time of writing, while the German DAX edged 0.29% lower at 8,983.97 points.

At the same time, the French CAC 40 index lost 0.42%, standing at 4,255.96 and the UK FTSE 100 dropped 0.33% at 6,755.32 points.

Meanwhile, Germany’s Federal Statistical Office (Destatis) posted its economic data showing that Germany’s retail sales advanced 0.2% in September, following the rise of 0.4% in the previous month. Read more

Facebook Shares Drops Despite Advance in Earnings

The Finance chief of the social media giants, Facebook revealed the company’s shares declined after a survey revealed a drop in teenage users and the young users preferred Twitter.

Facebook stocks advanced 18% to $57.98 following its upbeat financial reports but later dropped back to $48.44, below the day’s closing price of $49.01.

Investors’ worries over the Finance chief David Ebersman comments, who confirmed that Facebook, noted a drop in its daily use among their teenage users. Read more

Recent rise in euro versus dollar illustrates importance of Fed speculation

The ratio of the euro to the U.S. dollar has been hovering close to its highest point in two years during the last few sessions, and the greenback has been encountering headwinds as more market participants anticipate that the Federal Reserve’s quantitative easing will not be tapered for some time.

These bond purchases have been cited by many as having a significant effect on asset values, and individuals who want to make money through trading different investments such as currency pairs should be aware of the key impact that this stimulus has had on the markets.

Fed continues bond purchases

The Fed has managed to push its balance sheet to more than $3 trillion over the last several years, and has been buying $85 billion worth of debt-based financial instruments every month since late last year. Read more

Increase in USD/JPY shows importance of data and QE speculation

The increase that the U.S. dollar experienced relative to the Japanese yen on Oct. 28 illustrated the key role that both economic data and the stimulus provided by the central banks of different jurisdictions can play in the value of this currency pair.

Knowing about the exchange rate between these two could be helpful to those who want to make money trading the currencies, as they are both considered safe-haven assets by many. In addition, the two nations that issue them – the U.S. and Japan – have some of the largest economies in the world.

Rising value of USD/JPY

The USD/JPY increased to as much as 97.74 early in the session, which represented a gain of 0.35 percent for the day, according to Investing.com. Read more

Gold prices drop amid rising dollar and lackluster economic data

The price of gold declined on Oct. 29, as global market participants responded to a rising value for the U.S. dollar and lackluster data contained in economic reports.

December gold settled at $1,345.50 an ounce at 1:36 p.m. on the Comex division of the New York Mercantile Exchange, Bloomberg reported. This represented a 0.5 percent decline for the day. This contract rose to as much as $1,361.80 per ounce during the prior session. This figure represented the highest value for the future in more than one month.

Gold market less concerned with Fed stimulus

It is important to note that market experts did not cite the outcome of the Federal Reserve’s policy meeting that was scheduled for this week as being important to the price of the precious metal. Read more