The Reserve Bank of India (RBI) unexpectedly raised its main
policy rate at today's meeting by 25bps to 7%. The central bank
said it continued to see inflation remaining firm in the country,
despite recent soft economic data. In addition to trying to defend
the price of the rupee, the surprise hike was likely done to
preempt the Turkish central bank, which is set to meet later this
evening and is likely increase its own policy rates.
Fourth-quarter UK GDP rose at the fastest rate since the first
quarter of 2008, up 2.8% year-over-year. This was in line with the
economist estimate; growth rose at a 0.7% quarterly rate.
With the exception of
) and its food chain of stocks, US equities remained relatively
strong today. The
(INDEXSP:.INX) rose 0.61% after three straight days of severe
losses. Nine out of 10 basic S&P sectors were positive with the
tech sector the lone decliner. The health care and financial
sectors both advanced strongly after being the weakest performers
in the past week. Strong earnings from
) in the past 24 hours helped keep a bid under the industrials.
The Conference Board's January consumer confidence index rose to
80.7 from 78.1 in the month prior, ahead of the 78.0 estimate.
Also, November 2013 home prices, according to S&P/Case Shiller
indices, rose 13.71% from a year ago, a slightly faster pace than
13.61% year-to-year in the month prior. Lastly, durable goods
orders fell 4.3% in December 2013, and capital goods orders fell
1.3%. Neither of these reports bode well for continued economic
strength in the first quarter 2014.
Tomorrow's Financial Outlook
The highlight of tomorrow's trading day will be the FOMC meeting at
2:00 p.m. EST, the last for current Federal Reserve Chairman Ben
Bernanke. Many market participants are expecting the Fed to taper
its asset purchases by an additional $10 billion, bringing the
total monthly purchases down to $65 billion.
February German GfK consumer confidence will be released tomorrow
morning. Economists estimate that the survey will remain unchanged
in the new month.
Over 30 major US companies will report earnings tomorrow. Notable
Las Vegas Sands