Economic News Whipsaws Markets Ahead of Fed: Morning Market Update April 30 - Gainesville Coins News
No Minimum order! We accept Pay with Credit Card
Call Us: (813) 482-9300 Mon-Fri 9:00AM-6:00PM EST
Login or Register
Log into your account
About Gainesville Coins ®
Billions Of Dollars Bought And Sold A+ BBB Rating 10+ Years No Hidden Fees Or Commissions All Inventory Ships Directly From Our Vault

Economic News Whipsaws Markets Ahead of Fed: Morning Market Update April 30

blog | Published On by
Economic News Whipsaws Markets Ahead of Fed: Morning Market Update April 30
world gold

It's been a roller coaster ride this morning in the markets, as ADP private sector payrolls came in above expectations, then shortly afterward, the markets were stunned by a the GDP report showing the U.S. economy was almost stopped dead in its tracks in the first quarter.

All of this is taking place in the looming shadow of the FOMC meeting ending today with a press release at 2pm ET.

Gold, which had been seeing pressure overnight, dropped on the ADP jobs report, which showed 220,000 new jobs in March, compared to expectations of 210,000. But then, only 15 minutes later, the GDP for the first quarter of 2014 was released. It was expected that it would show a weak 1.1% gain, due to the blizzards and polar vortexes that plagued the nation in January and February, but it came within a heartbeat of recession, at 0.1%.

This freaked the stock markets and send gold shooting higher, but things soon settled back down to previous levels. Wall St. opened lower, and is trading flat. Silver once again seems to be the stepchild, and is being pushed lower than the other metals. The PGMs didn't seem phased much at all over this morning's news.

yuan-vs-dollar

EU composite CPI came in at 0.7% y/y for April, lower than expected. This gave new strength to the euro, as the dollar and yuan both fell moderately. The yuan touched an 18-month low in trading today, and the DXY dollar index is showing a loss of about a third of a percent.

Of course, the big news today is the Federal Reserve's Open Market Committee meeting, which winds up this afternoon. Fed Chair Janet Yellen will not be holding a press conference after the meeting (that happens every other FOMC meeting.) While everyone expects the taper to continue, every single word of the press release will be gone over in a desperate attempt to predict when the near-zero interest rates the Fed charges the banks will start rising to normal levels. With the way the market is being tossed and tumbled today, expect wild reactions to rumors.

ukraine

Of course, we can't forget about Ukraine. While things seem to have settled into name-calling in the press after more government buildings were seized by armed militants in eastern Ukraine, things could get messy in a flash.

 

by Steven Cochran

Gainesville Coins Portfolio Tracker and Financial News

This site uses cookies for analytics and to deliver personalized content. By continuing to browse our site, you agree that you have read and understand our Privacy Policy.