Daily Market Review 18 of July
Federal Reserve Chairman Ben Bernanke offered a downbeat view of the U.S. economic outlook yesterday, but failed to explicitly indicate if additional stimulus measures are imminent.

In his testimony on Tuesday, Bernanke said the economic recovery was being held back by anxiety over Europe's debt crisis and the path of U.S. fiscal policy, and he expressed unease over a stagnant jobs market.

He said the central bank was considering a range of tools to help the economy but stuck to an earlier message that the Fed was waiting to see if they would be needed.

Without leaving North America, The Bank of Canada left its benchmark interest rate unchanged for the 15th consecutive meeting in July, it said on Tuesday.

In a statement, the central bank said it was leaving its overnight cash rate unchanged at 1.00%, in line with expectations.

At the close of yesterday session, the Dow Jones Industrial Average ended up 0.62%, the S&P 500 was up 0.74% while the Nasdaq Composite was up 0.57%.

The Asian stock markets were broadly lower during late Asian trade today, as market sentiment declined after Federal Reserve Chairman gave a bleak assessment of the U.S. economy and failed to signal a fresh round of stimulus to boost growth.

During late Asian trade, Hong Kong's Hang Seng Index tumbled 1.4%, Australia’s ASX/200 Index fell 0.45%, while Japan’s Nikkei 225 Index shed 0.3%.

European stocks were higher during early European trade on Wednesday, as shares in Credit Suisse rallied on the back of stronger-than-expected earnings.

In earnings news, Swiss lender Credit Suisse saw shares rally 6.3% after reporting a 3.6% rise in net profit for the second quarter and said it aims to boost capital by CHF15.3 billion Swiss francs (USD15.6 billion) before year-end.

Lack of data in the euro bloc will shift investors’ attention to the Fed’s Beige Book, due this evening, According to many analysts, the Fed’s Beige Book would continue with the tone expressed in the last FOMC meeting, suggesting a moderate growth of the US economic activity in the upcoming periods, thus discarding further easing in the very short term.

At the moment, US equity markets pointed to a mildly lower open, as investors awaited earnings from Bank of America and Bernanke's return to Capitol Hill later Wednesday to testify to the House Financial Services Committee.

EUR/USD is currently trading near its open price failing to break above the 1.23 mark. A dramatically move recorded in the pair yesterday where it saw as low as at 1.2189 and as high as 1.2316.with no major enouncement today, we estimate it will continue to trade around the 1.2250-1.2300 for the rest of the day.