U.S. Equities Advance Amid Earnings Reports Before Fed Decision

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U.S. stocks advanced, after equities’ biggest gain in two weeks, amid better-than-estimated results from Gilead Sciences Inc. to General Dynamics Corp. before the Federal Reserve’s decision on monetary policy.

Gilead gained 3.3 percent as quarterly results exceeded estimates and it raised its sales forecast. General Dynamics and Northrop Grumman Corp. jumped more than 4.7 percent after the defense contractors lifted their profit outlooks. Twitter tumbled 13 percent as its top executives struck a critical tone on user growth. Akamai Technologies Inc. lost 5.1 percent after earnings missed expectations.

The Standard & Poor’s 500 Index gained 0.5 percent to 2,103.28 at 12:10 p.m. in New York, above its average price during the past 50 days. The Dow Jones Industrial Average added 98.21 points, or 0.6 percent, to 17,728.48. The Nasdaq Composite Index rose 0.2 percent.

Investors are awaiting the Fed’s policy statement for signs on when it will move to raise borrowing costs. Economists forecast the central bank will hold rates steady in a decision at 2 p.m. in Washington. Fed Chair Janet Yellen has emphasized that the timing of rate liftoff is less important than the subsequent pace of increases, which she said would be gradual.

Source: Bloomberg

European Stocks Advance for Second Day on Earnings, M&A Boost

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European stocks had their biggest two-day gain in two weeks as companies from Bayer AG to PSA Peugeot Citroen reported better-than-estimated earnings and deals activity intensified.

Bayer and Peugeot rose more than 3.9 percent. GlaxoSmithKline Plc climbed 3.5 percent after the U.K.’s biggest drugmaker posted second-quarter profit that declined less than analysts had estimated. Barclays Plc added 1.8 percent and Numericable-SFR SAS added 3 percent as profit rose. Italcementi SpA surged 49 percent as HeidelbergCement AG said it will buy it. The German company lost 6.3 percent.

The Stoxx Europe 600 Index gained 1 percent to 394.01 at the close of trading in London. It rose for the first time in six days on Tuesday amid earnings that topped projections and takeover activity. Dealmaking is on track for the busiest third quarter on record, with volume set to surpass $1 trillion.

Quintain Estates & Development Plc jumped 22 percent after a Lone Star Funds affiliate agreed to purchase it. Solvay SA slipped 3 percent after agreeing to acquire Cytec Industries Inc. for $5.5 billion.

Source: Bloomberg

USD/JPY: Bulls fighting for control post Japan’s retail sales

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The US dollar remains better bid versus its Japanese counterpart in early moves, with USD/JPY heading towards previous highs, as the yen remains undermined despite the latest Japan’s retail sales figures coming in a touch better than market forecasts.

USD/JPY little changed post Japan’s data

Currently, the USD/JPY pair trades flat at 123.58, supported above key 123.50 levels. USD/JPY is seen struggling near the mid-point of the 123 handle at Tokyo open as bulls strive to keep the upper hand following the release of above estimates Japanese retail sales data.

Retail sales in the world's third-largest economy rose an annual 0.9% in June, beating expectations for a 0.5% rise but still slowing sharply from a 3% spike in May. The report comes after the government recently downgraded its forecasts for consumer prices.

USD/JPY Technical Levels

To the upside, the next resistance is located 123. 85 (July 26 High) levels and above which it could extend gains 124.12 (July 24 High) levels. To the downside immediate support might be located at 123.01 (July 27 Low) below that at 122.57 (July 3 Low) levels.

Source:FxStreet

Dollar Rises Versus Yen as Easing China Rout Lifts Risk Demand

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The dollar rose for the first time in four days versus the yen as a selloff in Chinese stocks and commodities slowed, lifting demand for riskier assets.

The greenback gained against the euro as U.S. stocks and yields on government bonds climbed as the Federal Reserve holds a two-day meeting to consider raising interest rates. The dollar rose 0.3 percent to 123.56 yen as of 5 p.m. in New York, and gained 0.3 percent to $1.1060 per euro. The Bloomberg Dollar Spot Index, which tracks the greenback versus 10 major peers, was little changed at 1,203.84.

New Zealand’s dollar rose 1.3 percent to 66.87 U.S. cents. The Australian dollar added 1 percent.

Source: Bloomberg