Daily Market Report - 09/10/2014

USD
US markets rose yesterday after minutes from the September meeting of the Federal Reserve were released. One of the points mentioned was that US central bankers are cautious of raising rates too soon, and that officials were worried markets were too focused on a rate rise occurring during a specific period of time.The minutes also reassured that a rate rise would be linked solely to positive economic data.

The Fed also kept its benchmark federal funds rate - which determines other short-term interest rates in the US economy, from car loans to mortgages - at 0% since the end of 2008, when the financial crisis began.

With the central bank announcing an end to their stimulus measures - which included buying bonds to keep long-term interest rates low - all eyes have now moved onto when it will raise the short term rate. US markets have benefited from low interest rates, and it has been evident investors have pumped money into stocks in an effort to make a profit.

With this said, The International Monetary Fund has released its global financial stability report, in which the organisation warns that a delayed period of ultra-low interest rates can cause the threat of another financial crisis by pushing investors into excessive risk taking in order to find better returns. 

The continuing combination of worries about a slowdown in economic growth, and geopolitical concerns such as the possible spread of the Ebola virus, combined once more to put markets under pressure.

AUD
overnight  had Australia's employment change this morning which came out at -29,700 from 32,100. Along with that, a reading for September of people in full time employment in Australia went from -79,700 to 21,600. This positive Employment data saw the Australian dollar strengthen.

Key Announcements:
12:00 BST -GBP: BoE interest rate update: expected to remain unchanged at 0.5%.
12:00 BST -GBP: BoE asset purchase facility expected to stay at 375Bn.
13:30  BST- USD: Initial jobless claims expected to rise from 287K to 294K
16:00  BST -EUR: ECB President Mario Draghi is making a speech.

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