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Market Review

According to a Reuters poll the Bank of Japan is expected to wait until the middle of next year before adopting further stimulus measures, even though Donald Trump's election as US president increases uncertainty to the economic outlook. METI in a report stated that the Japanese tertiary industry activity fell to a seasonally adjusted -0.1%, from 0.0% in the previous month. The Chinese banks extended 651.3 billion yuan in net new yuan loans in October, as policymakers promised to avoid asset bubbles in the increasingly debt-fuelled economy.

The Federal Statistical Office Germany indicated that the German CPI had risen to a seasonally adjusted 0.2%, from 0.2% in the previous month. Destatis stated in a report that Germany’s Wholesale Price Index rose to 0.4%, from 0.4% in the preceding month.

The Vice Chairman of the FED Stanley Fischer pointed out on Friday that he saw a strong case for gradual policy tightening and believes that the approach would help mitigate risks to foreign economies. The preliminary publication of the data for November from the University of Michigan's Consumer Survey Center indicated that the US consumer sentiment increased more than expected from 87.2 to 91.6 in the preceding month.
 
Currencies: The dollar went up against other major currencies on Friday following the release of data indicating that the US consumer sentiment increased to a five month high in November. The EURUSD traded lower between $ 1.0924 and $ 1.0831. The GBPUSD traded higher between $ 1.2526 and $ 1.2674. The USDJPY traded lower between ¥ 106.04 and ¥ 106.93.

Crude oil: Oil prices went down on Friday as continuing concerns over a global supply surplus continued to weigh on the commodity amidst increasing doubts OPEC will be able to limit production. On the ICE future Exchange, North Sea Brent crude traded lower between $ 45.90 and $ 44.21. On the New York Mercantile Exchange, US light crude oil traded lower between $ 44.63 and $ 43.09.

Gold: The price of gold dropped on Friday as market sentiment continued to improve amidst increasing optimism surrounding the effects of a Trump presidency on the economy. On the COMEX division of the New York Mercantile Exchange, gold traded lower in a range between $1265.40 and $1218.89 an ounce.

Indices: Asian shares were mostly up on Friday as investors were anxious about higher interest rates under incoming president Donald Trump. At the close in Tokyo, the Nikkei 225 went up by 0.18%. At the close in China, Shanghai Composite edged up 0.80%.

European stocks were down on Friday as the market sentiment remained supported following Donald Trump’s electoral victory. At the close in Frankfurt the DAX advanced 0.36%. At the close in Paris, the CAC40 declined 0.92%. At the close in Madrid, the IBEX 35 fell 1.34%. Finally, at the close in London the FTSE100 declined 1.43%.

Wall Street stocks traded higher on Friday while investors digested a jump in consumer sentiment along with a reiteration by the FED to proceed with gradual removal of accommodative monetary policy. At the close, the Dow Jones industrial average gained 0.21%. The S&P 500 fell 0.10% and the NASDAQ composite went up 0.54%.
 
Economic Calendar
Monday 14th November 2016:

Time

Currency

Events

Forecast

Previous

2:00am

CNY

Industrial Production y/y

 

6.10%

2:00am

CNY

Fixed Asset Investment ytd/y

 

8.20%

2:00am

CNY

Retail Sales y/y

 

10.70%

4:30am

JPY

Revised Industrial Production m/m

 

0.00%

10:00am

EUR

Industrial Production m/m

 

1.60%

3:00pm

EUR

ECB President Draghi Speaks

 

 

Posted: 11/14/2016 7:30:40 AM by Global Administrator | with 0 comments


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