Morning Briefing: Yellen speech leaves markets mixed, US GDP awaited

Morning Briefing: Yellen speech leaves markets mixed, US GDP awaited

Morning Briefing: Yellen speech leaves markets mixed, US GDP awaited Yellen speech leaves markets mixed, US GDP awaited
Global stocks are mixed so far Friday as investors pick through the details of Fed chair Janet Yellen’s speech along with regional data. With Yellen talking of an interest rate rise “later this year” analysts are expecting a December rise. US economic conditions appear “generally solid” Ms. Yellen said and noted that a 2 per cent inflation target should be achievable over the coming few years.

Markets are also awaiting the latest indication of US growth with GDP figures out at 8.30am ET.

Asian markets have closed with losses with the exception of Tokyo and Hong Kong. Continued concern over regional and global growth and the lower lead from Wall Street led to volatile trade.

Europe is so far optimistic with Yellen’s speech giving hope that the US economy is not stalling and GDP figures will be closely watched. European equities are up almost 3 per cent.

Toronto and New York are expected to open higher. The US dollar is higher.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 16,201.32 (-0.48 per cent) +3.41 per cent -4.39 per cent
TSX Composite 13,338.67 (-0.34 per cent) +1.43 per cent -10.44 per cent
 
Europe (at 6.00am ET)
UK FTSE 6,101.72 (+2.35 per cent) +0.34 per cent -8.10 per cent
German DAX 9,695.08 (+2.84 per cent) -4.28 per cent +1.95 per cent
 
Asia (at close)
China CSI 300 3,231.95 (-1.61 per cent) +6.21 per cent +32.62 per cent
Japan Nikkei 17,880.51 (+1.76 per cent) +0.41 per cent +9.20 per cent
 
Other Data (at 6.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
48.32
(+0.33 per cent)
45.28
(+0.82 per cent)
1143.70
(-0.88 per cent)
U$0.7505
 
Aus. Dollar
U$0.7013
 
Diesel auto sales could be hit by VW scandal
The Volkswagen emissions data scandal could have wide reaching implications. With the possibility that other automakers may also have released unreliable data consumers may avoid diesel vehicles in the coming months. With an increasing number of jurisdictions planning action over VW and the wider industry trust is expected to be damaged. The CEO of Florida’s AutoNation told NBC News that: "You now have a passionate constituency that feels betrayed." Meanwhile VW will announce its new boss Friday with high speculation that it will be Porsche’s Matthias Mueller. Porsche is owned by VW.