The Turkish central bank announced today that it would hold an
unexpected meeting of its monetary policy committee tomorrow. The
meeting is being conducted to shore up the decline in the lira, and
will probably include a significant increase in the bank's policy
rate and various capital controls to prevent money from fleeing the
country. In an official statement, the central bank said that it
plans to "discuss recent developments and take the necessary policy
measures for price stability."
The surprise announcement by the Turkish central bank pushed up
pre-market equity index futures after the 3% drop in the prior two
sessions. However, the
(INDEXSP:.INX) experienced weakness shortly after the opening
minutes, pushing the index's price down to critical 1,775 support.
But the weakness turned out to be short-lived as equities recovered
in the afternoon to post an increase for the day only to give back
a large portion of those gains in the closing minutes. The
(INDEXRUSSELL:RUT) substantially lagged the larger-cap indices.
December 2013 new-home sales declined to a seasonally adjusted
annual rate of 414,000 from 445,000 in the month prior (the prior
month was revised down from 464,000). The economist estimate had
been for a 1.9% month-over-month decline to 455,000. The likely
reason for the substantial miss is the extreme cold weather that
swept the country in that month.
) reported earnings in the pre-market, beating expectations
solidly. The main highlight was the company's announcement that it
plans to purchase an additional $10 billion in common stock after
its existing $7.5 billion plan wraps up in the coming quarter.
Forward guidance for 2014 revenues and earnings were roughly in
line with analyst expectations.
Tomorrow's Financial Outlook
Tomorrow morning, December 2013 US durable goods orders will be
released. Economists are estimating that orders rose 1.8%
month-over-month, up from a 3.4% gain in the month prior. Durable
goods orders ex-transportation are estimated to rise 0.6%. Capital
goods orders, which play an important part in determining GDP, are
estimated to rise 0.3% during the month. The other economic data
points to note are the November 2013 S&P/Case Shiller home
price index and the January Conference Board consumer confidence
The Reserve Bank of India will make its monthly monetary policy
decision tomorrow morning. Market participants are not expecting a
major change in the central bank's stance. The advance estimate of
4Q UK GDP is also due out.
It will be a very busy day for earnings in the US tomorrow.
Twenty-three companies are scheduled to report. Notable names