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Market Review

The Finance Minister of Japan Taro Aso stated that higher inflation could help the government to repay debt as the country carries on pushing a 2% inflation target for the Bank of Japan regardless of missing such aims five times since it began aggressive easing in April 2013.

The ECB’s Executive Board member Yves Mersch stated that the European Central Bank must roll back its aggressive stimulus measures “as soon as possible”, even though the high volume of bonds it is buying mean the withdrawal will probably take time. The UK Office for National Statistics stated in a report UK’s retail sales increased 1.9% in October from the previous month.

Fed Chair Janet Yellen in Congressional testimony stated that the election of Donald Trump as president of the US has done nothing to change the Fed’s plans for a rate increase “relatively soon”. The US Commerce department indicated that the annualised CPI hit a two-year high in October as consumer prices gained 0.4%, compared to a 0.3% increase in the previous month.  The US Department of Labor stated that the number of people who filed for unemployment claims in the week ending November 12 fell by 19,000 to a seasonally adjusted 235,000 from the previous week’s total of 254,000. The Philly Fed manufacturing index expanded less than expected in November reaching 7.6 from 9.7 in October.

Currencies: The dollar edged up and stayed within close distance of a fourteen-year peak against the other major currencies on Thursday, as strong US data enhanced optimism over the strength of the economy. The EURUSD traded lower between $ 1.0745 and $ 1.0620. The GBPUSD traded lower between $ 1.2506 and $ 1.2409. The USDJPY traded higher between ¥ 108.56 and ¥ 109.99.

Crude oil: The price of oil went down on Thursday as expectations of an OPEC deal to limit production outweighed oversupply concerns. On the ICE future Exchange, North Sea Brent crude traded lower between $ 47.61 and $ 46.03. On the New York Mercantile Exchange, US light crude oil traded lower between $ 46.56 and $ 44.88.

Gold: The price of gold went down on Thursday as markets digested the testimony of Federal Reserve Chair Janet Yellen. On the COMEX division of the New York Mercantile Exchange, gold traded lower in a range between $1231.45 and $1210.98 an ounce.

Indices:  Asian shares were mostly up on Thursday as investors waited for comments by Fed Chair Janet Yellen. At the close in Tokyo, the Nikkei 225 went up by 0.00%. At the close in China, Shanghai Composite edged up 0.15%.

European stocks were up on Thursday as markets continued to pause after the recent post US election rally in global equities. At the close in Frankfurt the DAX advanced 0.20%. At the close in Paris, the CAC40 advanced 0.59%. At the close in Madrid, the IBEX 35 added 0.92%. Finally, at the close in London the FTSE100 advanced 0.67%.

Wall Street traded higher on Thursday as gains in the Consumer Services, Financials and Technology sectors led shares higher. At the close, the Dow Jones industrial average advanced 0.19%. The S&P 500 went up 0.45% and the NASDAQ composite edged up 0.74%.
 
Economic Calendar
Friday 18th November 2016:

Time

Currency

Events

Forecast

Previous

8:30am

EUR

ECB President Draghi Speaks

 

 

9:10am

GBP

MPC Member Broadbent Speaks

 

 

10:30am

EUR

German Buba President Weidmann Speaks

 

 

10:30am

USD

FOMC Member Bullard Speaks

 

 

1:30pm

CAD

Core CPI m/m

0.30%

0.20%

1:30pm

CAD

CPI m/m

0.20%

0.10%

2:30pm

USD

FOMC Member Dudley Speaks

 

 

2:30pm

USD

FOMC Member George Speaks

 

 

Posted: 11/18/2016 8:14:16 AM by Global Administrator | with 0 comments


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