MARKET TRENDS
U.S. stocks extended their recent rally touching an all time high in the Dow Jones in mid session as better than expected Jobs numbers and continues improvements in the housing market helped the positive sentiment.
Hopes that the second-quarter earnings session that just kicked off on Monday will beat expectations also helped to lift the overall sentiment.
After the closing bell on Monday, U.S. aluminum producer Alcoa kicked off the 2nd quarter earnings season. Its earning did beat expectation both on top and bottom line.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.50%, the S&P 500 index ended up 0.72%, while the
Nasdaq Composite index gained 0.56%.
Asian stock markets traded mixed on Wednesday, following the release of disappointing trade data out of China.
Despite the mixed sentiment in Asia, the Chinese markets did recover sharply at the close following a few reports that speculate that China's central bank may ease policy to boost growth after the country's exports fell for the first time in 17 months.
Official trade data released earlier showed that Chinese exports fell 3.1% from a year earlier in June, confounding expectations for a 4.0% increase.
This report came after yesterday the IMF cuts its forecast to the growth estimate for the global economy to 3.1% in 2013, down from a previous estimate of 3.3%, citing a slowdown in emerging markets and a longer recession in Europe.
Later in the day, the FOMC is to publish the minutes from its latest policy meeting which will shade some light on the inside discussions with regards to the FED’s continues Monetary policy. Soon after the publication, Fed Chairman Ben Bernanke is scheduled to appear in public as well.
GOLD
Investors are looking ahead to Wednesday's minutes of the Federal Reserve's June meeting, for further hints regarding the direction of U.S. monetary policy.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.
The latest reports on China central bank intervention with the latest data from china that showed that the inflation in China accelerated at a faster rate than expected last month.
Official data released earlier showed that consumer prices in China rose 2.7% in June from a year earlier, above expectations for a 2.5% increase and accelerating from a 2.1% rate of increase in May.
Gold is considered a hedge against inflation risk and gold prices tend to keep in step with consumer price increases.
The gold is trading at a one week high despite the sharp decline on Friday but it is expected to trade nervously ahead of today’s FOMC minutes and the FED speech.
Support; 1243, 1225, 1209
Resistance; 1259, 1290
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