Market Blog > August 2016 > Market Review

Market Review

The Bank of Japan increased its buying of ETF’s to ¥6 trillion from ¥3.3 trillion as part of an attempt to ease policy further and boost the economy as downside risks to the economy remain, but held other policy levers steady. In a report, the Ministry of Economy, Trade and Industry said that industrial production in Japan rose to a seasonally adjusted 1.9%, from -2.6% in the preceding month. Japanese retail sales rose to a seasonally adjusted annual rate of -1.4%, from -1.9% in the preceding month. Japan’s unemployment rate fell unexpectedly in June to a seasonally adjusted 3.1%, from 3.2% in the previous month.

Economic growth in the euro zone halved in the second quarter as France economy stalled, while unemployment held just above 10 percent in June. According to Eurostat, consumer price inflation (CPI) in the euro zone rose unexpectedly last month to a seasonally adjusted annual rate of 0.2%, from 0.1% in the preceding month. In another release Eurostat said unemployment in the euro zone was unchanged in June at 10.1 percent after a slight fall in May.

In a report, the Bureau of Economic Analysis said that GDP in the U.S. rose less-than-expected to a seasonally adjusted annual rate of 1.2%, from 0.8% in the preceding quarter. The U.S.’s Chicago PMI fell to a seasonally adjusted 55.8, from 56.8 in the preceding month. U.S. UoM consumer sentiment rose less-than-expected last month to a seasonally adjusted 90.0, from 89.5 in the preceding month.

Currencies: The dollar dropped to four-week lows against the other major currencies on Friday, after the release of weak U.S. second quarter growth data. The EURUSD traded higher between $1.1070 and $1.1197. The GBPUSD traded higher between $1.3150 and $1.3302. The USDJPY traded lower between ¥105.65 and ¥101.97.

Crude oil: Oil prices recovered slightly on Friday amid short-covering after a week-long selloff but were on track to end the month in deep negative territory. On the ICE future Exchange, North Sea Brent crude traded higher between $42.52 and $43.60. On the New York Mercantile Exchange, U.S. light crude oil traded higher between $40.58 and $41.62.

Gold:  Gold rose sharply on Friday, reaching to two-week highs, as the U.S. Dollar fell after poor GDP data. On the COMEX division of the New York Mercantile Exchange, gold traded lower in a broad range between $1335.00 and $1360.70 an ounce.

Indices: Asian shares were mixed on Friday as the Bank of Japan decided to move cautiously on easing policy. At the close in Tokyo, the Nikkei 225 added 0.56%. At the close in China, the Hang Seng dropped 1.28%.

European stocks were higher on Friday, after the Bank of Japan decided not to push with massive stimulus measures at this point. At the close in Frankfurt the DAX added 0.55%. At the close in Paris, the CAC40 rose 0.46%. At the close in Madrid, the IBEX 35 climbed 1.11%. Finally, at the close in London the FTSE100 edged up 0.02%.

Wall Street turned mostly positive in trading on Friday mainly due to stock EPS results. At the close, the Dow Jones industrial average lost 0.14%. The S&P 500 added 0.20% and the NASDAQ composite advanced 0.14%.

Economic Calendar

Monday 1st August 2016:

Time

Currency

Events

Forecast

Previous

01:00

CNY

Manufacturing PMI

 

50

01:00

CNY

Non-Manufacturing PMI

 

53.7

01:15

USD

FOMC Member Dudley Speaks

 

 

01:45

CNY

Caixin Manufacturing PMI

 

48.6

07:15

EUR

Spanish Manufacturing PMI

 

52.2

08:30

GBP

Manufacturing PMI

 

49.1

14:00

USD

ISM Manufacturing PMI

 

53.2


 
Posted: 8/1/2016 6:25:55 AM by Global Administrator | with 0 comments


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