Wednesday's Market Data And The FOMC
Tech Talk | Sep 17, 2014 07:32AM ET
- Consumer Price Index for August will be released at 8:30am. The market expects no change on a month-over-month basis versus an increase of 0.1% previous. Less Food and Energy, the index is expected to increase by 0.2% versus an increase of 0.1% previous.
- Current Account for the Second Quarter will be released at 8:30am. The market expects –$114.0B versus –$111.2B previous.
- Housing Market Index for September will be released at 10:00am. The market expects 56 versus 55 previous.
- Weekly Crude Inventories will be released at 10:30am.
- FOMC Meeting Announcement will be released at 2:00pm. The market expects no change in rates at 0 to 0.25%. The Chair Press Conference will follow at 2:30pm.
- Bank of England Minutes will be released at 4:30am EST.
- Great Britain Labour Market Report for August will be released at 4:30am EST. The market expects the Claimant Count to decline by 32,000 versus a decline of 33,600 previous. The Unemployment Rate is expected to tick lower to 6.3% versus 6.4% previous.
- Euro-Zone CPI for August will be released at 5:00am EST. The market expects a year-over-year increase of 0.3% versus an increase of 0.4% previous.
- Japan Merchandise Trade for August will be released at 7:50pm EST. The market expects a deficit of ¥1028.6B versus a deficit of ¥964.0B previous.
Stocks rallied on Tuesday as investors bet on the Fed being less hawkish than originally expected when the latest monetary policy announcement is released on Wednesday. Major equity indices clawed back recent losses accumulated since the month began, including the Dow Jones Industrial Average, which is once again testing resistance at the summer highs. As well, the VIX charted a significant outside reversal, dropping almost 10% and exceeding the trading range from the previous session. However, despite all of the bullish qualities that dominated the session, defensive equity positions continued to top the market leaderboard; Health Care, Consumer Staples, and Utilities saw returns top that of the broad market, while a number of cyclical sectors underperformed. The suggestion remains that investors are continuing to become risk averse, potentially in anticipation of broad market weakness ahead.
Get The News You Want
Risk aversion in the equity market is becoming clearly apparent when looking at the ratio of Consumer Staples ETF (ARCA:XLP) versus Consumer Discretionary ETF (ARCA:XLY) and the Russell 2000 Small Cap Index versus the S&P 500 Large Cap Index. In both cases, the lower beta, more defensive position has outperformed the riskier, higher beta counterpart since the year began as investors show their reluctance in taking on risk. The ratio of Consumer Staples versus Consumer Discretionary has just broken above an intermediate declining trendline in recent sessions, suggesting a renewed trend of risk aversion, similar to that realized in the Spring of this year. Risk aversion seasonally reaches a peak at this time of year with consumer staples maintaining an outperforming trend versus the consumer discretionary sector through to November.
Seasonal charts of companies reporting earnings today:
Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.89.
S&P 500 Index
Horizons Seasonal Rotation ETF Horizons Seasonal Rotation (TO:HAC)
- Closing Market Value: $14.44 (up 0.28%)
- Closing NAV/Unit: $14.42 (up 0.21%)
Performance*
| 2014 Year-to-Date | Since Inception (Nov 19, 2009) | |
| HAC.TO | 0.84% | 44.2% |
* performance calculated on Closing NAV/Unit as provided by custodian
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.