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Market Review

According to a Cabinet Office official, Bank of Japan Governor Haruhiko Kuroda said that the central bank will continue with monetary easing under its new policy framework to achieve the 2 percent inflation target quickly. Seiichi Shimizu said in an interview with Nikkei news that the Bank of Japan's new policy of targeting interest rates and the slope of the yield curve is not an attempt to peg yields at a fixed rate.

The euro zone bailout fund ESM released on Tuesday a 2.8 billion euro loan tranche to Greece, following a commitment made by euro zone finance ministers earlier this month which was conditional on an assessment of the clearance of net arrears by Greece. German business confidence in October rose to the highest level since April 2014, amid uncertainty over Britain's vote to exit the EU.

In a report, the Conference Board U.S. said its index of consumer confidence fell back more than expected in October to 98.6 this month from a reading of 103.5 in September. In a report, Federal Reserve Bank of Richmond said that its manufacturing index fell less-than-expected last month to a seasonally adjusted annual rate of -4, from -8 in the preceding month.

Currencies: The dollar traded close to nine-month highs against the other major currencies, while the pound dipped ahead of remarks by Bank of England Governor Mark Carney. The EURUSD traded lower between $1.1068 and $1.1004. The GBPUSD traded broadly higher between $1.2106 and $1.2325. The USDJPY traded lower between ¥103.28 and ¥104.48.

Crude Oil: Oil prices went under pressure, reversing early gains as fading expectations of a coordinated production cut among major global oil producers and a stronger U.S. dollar weighed. On the ICE future Exchange, North Sea Brent crude traded lower between $51.83 and $50.55 On the New York Mercantile Exchange, U.S. light crude oil traded lower between $50.93 and $49.73.

Gold: Gold added to overnight gains, as market players looked ahead to more U.S. economic data for clues on the likelihood of a December rate hike. On the COMEX division of the New York Mercantile Exchange, gold traded higher in a broad range between $1262.02 and $1276.59 an ounce.

Indices:  Asian shares were mostly higher as Japan Transportation Equipment, Automobiles & Parts and Rubber sectors led share gains. At the close in Tokyo, the Nikkei 225 gained 0.76%. At the close in China, Shanghai was up 0.12%.

European stocks traded mostly lower as earnings and positive news from Greece and the German economy were overshadowed by ECB president comments. At the close in Frankfurt the DAX edged down 0.02%. At the close in Paris, the CAC40 lost 0.29%. At the close in Madrid, the IBEX 35 dropped 0.99%. Finally, at the close in London the FTSE100 rose 0.40%.

Wall Street traded slightly lower, as consumer confidence missed estimates. At the close, the Dow Jones industrial average dropped 0.29%. The S&P 500 lost 0.39% and the NASDAQ composite declined 0.50%.

Economic Calendar
Wednesday 26th October 2016:

Time

Currency

Events

Forecast

Previous

06:00

EUR

GfK German Consumer Climate

10.1

10

07:00

EUR

German Import Prices m/m

0.10%

-0.20%

08:30

GBP

BBA Mortgage Approvals

37.3K

37.0K

12:30

USD

Goods Trade Balance

-60.6B

-59.2B

12:30

USD

Prelim Wholesale Inventories m/m

0.10%

-0.20%

13:45

USD

Flash Services PMI

52.4

52.3

14:00

USD

New Home Sales

601K

609K

14:30

USD

Crude Oil Inventories

0.7M

-5.2M


 
Posted: 10/26/2016 7:21:21 AM by Global Administrator | with 0 comments


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