Newsletter for 24th of July

EVENTS & FINANCIAL NEWS

CURRENCIES

The U.S. dollar rose to eight–month highs against the euro on Wednesday as worries over tougher sanctions on Russia and their potential impact on fragile euro zone growth weighed on the single currency. The dollar could only post modes gains, however, as attempts to push the euro below a key technical level at $1.3450 failed. The greenback had taken out some technical barriers on Tuesday after U.S. inflation data showed prices increasing, though the increase was more subdued than some had expected. Dollar gains were more subdued on Wednesday with no major economic releases and before the Federal Reserve is due to meet next week. Further escalation of tensions between Russia and Ukraine could weigh further on the euro if more trade sanctions are enforced on Russia. The Australian dollar was the largest mover of the major currencies, gaining 0.69 percent to US$0.9455 after a higher-than-expected reading of a key gauge of underlying inflation in June in Australia dented market speculation of future rate cuts. The U.S. dollar meanwhile gained 0.17 percent against the British pound to US$1.7034, after BOE minutes failed to boost expectations of an interest rate hike by year-end. The dollar index was steady on the day at 80.714.

STOCKS

U.S. stocks ended mostly higher on Wednesday with the S&P 500 closing at a record on Apple's bullish results, though Boeing weighed on the Dow and conflicts in Ukraine and the Gaza Strip kept the broader market's gains in check. Apple Inc gave one of the biggest lifts to the market, rising 2.6 percent to $97.19 as concerns faded about the iPhone maker's margins. Microsoft Corp rose 0.1 percent to $44.87 after the company said it aimed to get its money-losing Nokia phone unit to break even within two years. Facebook Inc posted stronger-than-expected revenue growth and its stock climbed 3.5 percent to $73.80 in extended-hours trading. TripAdvisor Inc shares tumbled 9.4 percent to $97.25. The Dow Jones industrial average fell 26.91 points or 0.16 percent, to end at 17,086.63. The S&P 500 gained 3.48 points or 0.18 percent to close at 1,987.01, surpassing the record set on July 3. The Nasdaq Composite added 17.68 points or 0.4 percent, to 4,473.70. Boeing Co fell 2.3 percent to $126.71. The U.S. aircraft maker reported a 52 percent jump in quarterly profit,but investors were spooked by rising costs in its military tanker program. PepsiCo rose 1.9 percent to $90.82. Puma Biotechnology nearly quadrupled, up 295.4 percent to $233.43 on heavy volume.

METALS

Gold fell for a second day on Wednesday as gains in U.S. equities and dearth of new developments from conflicts in Ukraine and the Middle East prompted investors take profits. Sluggish physical demand in Asia in the seasonally quiet summer period is also weakening support for any price rally, dealers said. Spot gold has traded within its narrowest monthly range in nearly five years so far in July, as strong equity markets divert investment interest from gold. Spot gold was down 0.2 percent at $1,304.55 an ounce. U.S. COMEX gold futures for August delivery settled down $1.60 an ounce at $1,304.70, with trading volume about 30 percent below its 30-day average, preliminary Reuters data showed. Among other precious metals, spot silver was unchanged from Tuesday's close at $20.88 an ounce. Spot platinum slipped 0.2 percent to $1,476.20 an ounce, while spot palladium was down 0.2 percent at $868.43 an ounce. Data released on Tuesday showed palladium shipments from top producer Russia to Switzerland, a major refining and trading hub, dropped in June after rising sharply in the previous two months. Palladium prices hit 13-year highs this month, in part due to concerns that supply of the metal from Russia may be threatened by its stand-off with the West over Ukraine.

ENERGIES

Crude oil futures rose on Wednesday, as oil stockpiles in the United States fell more than expected and geopolitical tensions in Eastern Europe and the Middle East persisted. U.S. crude's gains outpaced Brent's for most of the session, after a government report showing that U.S. crude stocks fell by 4 million barrels last week, but Brent caught up as traders covered short positions ahead of the close. The U.S. EIA also reported crude oil inventories at Cushing, Oklahoma, the delivery point of the U.S. crude contract, fell by 1.45 million barrels. Brent crude for September delivery rose 70 cents to settle at $108.03 and continued to climb in post-settlement trade to stand at $108.19. U.S. crude for September delivery rose 73 cents to $103.12 a barrel. U.S. crude's discount to Brent dropped to $4.51 earlier in the session, near a three-month low, as high domestic refinery utilization rates signaled strong near-term demand for crude oil and low inventories at Cushing. It ended the day at $4.91. Brent has fallen about 7 percent since mid-June as low profit margins have crimped European refiners' demand for crude. Fuel storage tanks that supply Tripoli were hit on Wednesday in clashes between rival Libyan militias, igniting a huge blaze near the international airport. WASHINGTON - U.S. Treasury Secretary Jacob Lew will deliver remarks at the Inaugural Rural Opportunity InvestmentConference hosted by the White House Rural Council. WASHINGTON - Energy Information Administration issues weekly U.S. underground natural gas stocks - 1430 GMT.

DISCLAIMER - The information contained herein is derived from sources we believe to be reliable, but of which we have not independently verified.Century Financial Brokers L.L.C. (CFB) assumes no responsibility for errors, inaccuracies or omissions in these materials, nor shall it be liable fordamages arising out of any person's reliance upon this information.