Daily Market Report - 29/10/2014

USD
Demand for U.S durable goods recorded its biggest drop in eight months in September and the pace of house price gains moderated in August falling to 5.6% from 5.8% , suggesting some cooling in economic growth in the third quarter. As markets in Europe and emerging nations slow.

US companies  want to see signs that sales are holding up before making expensive investments to modernise manufacturing plant. Orders to American factories for long-lasting equipment such as machinery and computers unexpectedly dropped 1.3 percent in September, indicating businesses worldwide are reluctant to spend on expanding output.

Despite this poor figure the US economy remains on solid ground as other data on Tuesday showed consumer confidence jumped to a seven-year high in October to 94.5 this month. The highest level  since October 2007, from a September reading of 89 that was stronger than initially estimated.   Consumer confidence advanced  as Americans  enjoyed More job security, gasoline prices at almost four-year lows  and a strengthening labour market are setting the stage for  stronger expansion.

The US like the rest of the world economy still faces a number of headwinds that can slow economic growth. Concerns ranging from worries about the impact of Ebola, the Ukraine crisis, the ongoing plight of the Eurozone, signs of further weakness in emerging markets and the Federal reserve  starting to tighten monetary policy through interest rate hikes. 

Key Announcements:
09.30 GBP: UK Mortgage approvals (Sept) expected to fall from 62,250 from 64,120
18:00 USD: US federal Reserve Interest Rate Announcement expected to remain unchanged at 0.25%
18:00 USD: US federal Reserve Monetary policy Statement. 

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