CFD Markets News and Forecasts — 22-09-2011

New lows for the day around $0.9720 as risk tickets  remain under pressure with the Dow down almost 500 points. Pair on track to retest support at $0.9535 that are lows going back to last December

By the early U.S. session, The dollar jumped and currencies of commodity exporters tumbled on concern global growth is stalling after the Federal Reserve said yesterday it saw “significant downside risks” to the U.S. economy. The Dollar Index climbed to a seven-month high as the Fed’s statement stoked concern the global economy is headed for a recession and currency volatility surged to a 16-month high. The euro reached a fresh decade-low against the yen after region’s services and manufacturing contracted
During the U.S. session, the dollar has reduced its rapid growth and is currently the major currencies traded mixed against the dollar. The market is characterized by high volatility. 

European stocks tumbled to a two- year low as the Federal Reserve signaled “significant downside risks” to the world’s largest economy and Moody’s Investors Service downgraded three U.S. banks.

National benchmark indexes retreated in all of the 18 western European markets. Germany’s DAX Index declined 5 percent and France’s CAC 40 dropped 5.3 percent. The U.K.’s FTSE 100 slid 4.7 percent, the most since March 2009.

Logitech International SA (LOGN), the world’s biggest maker of computer mice, plunged 12 percent after cutting its forecasts for the second time in two months. Rio Tinto Group, the world’s second-largest mining company, sank the most in more than two years as copper fell for a fifth day. LVMH Moet Hennessy Louis Vuitton SA (MC) and Burberry Group Plc (BRBY) led luxury stocks lower.

• Need To Recapitalize Vulnerable EU Banks

U.S. stocks continue to fall.

To date, the Dow 10,770.95 -353.89 -3.18%, Nasdaq 2,473.15 -65.04 -2.56%, S & P 500 1,133.31 -33.45 -2.87%.

All sectors of S & P500 index showed a fall. The largest decline in the sector conglomerates and the basic materials sector - 5.1% and 5.0% respectively.

Gold prices on Thursday demonstrated a tangible negative trend due to the fact that the rise of the dollar against global currencies has reduced the demand for the metal as an investment alternative, according to data exchanges. With increasing dollar demand for gold as a more reliable asset was under pressure.

The price of gold futures on the New York Mercantile Exchange fell to $1732.10 per ounce (-4.2%).

Oil fell to the lowest price in more than four weeks in New York after the U.S. Federal Reserve cited “significant downside risks” to the economic outlook in the world’s biggest crude-consuming nation.

The Fed’s decision not to implement an outright third round of so-called quantitative easing “leads investors to take their money out of the risky assets like oil

Analyst says that the oil market is on downside momentum with serious lack of risk appetite. In addition to the weak macroeconomic data, we have to acknowledge the lack of oil demand from the U.S. and emerging markets, amid ongoing concerns about growth.

To date, the November crude oil futures Nymex WTI price fell by 4.88% and reached $ 81.73 a barrel.

In Japan, a national holiday - Autumnal Equinox Day.

At 08:30 GMT there are data on the volume of UK mortgage lending by the BBA. It is predicted that the data in August, virtually unchanged - 33.2K 33.4K against in July.

At 09:00 GMT, Switzerland showed quarterly report on inflation from the Swiss National Bank Q3.

On this day in the U.S. will be important meetings - September meeting the IMF will begin at 14:00 GMT. And at 15:00 GMT start the second day meeting of leaders of big twenty G20. At 17:30 GMT a speech a member of the FOMC William Dudley.