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Market Review

A former BOJ deputy governor stated that the system of money printing by the Bank of Japan has made dysfunctional and fiscal policy dependent on cheap money, warning against expanding monetary stimulus further.

Germany’s Gfk consumer climate decreased more than forecast last month. Research group Gfk in a report, said that its index of Germany’s consumer climate decreased to 9.7, from 10.0 in the previous month. Germany’s import price index increased last month. Destatis in a report said that German Import Price Index increased to a seasonally adjusted 0.1 percent from -0.2 percent in the previous month. The number of mortgages approved by the British Banker’s Association increased unexpectedly last month. British Bankers’ Association in a report, said that BAA mortgage approvals increased to a seasonally adjusted 38.3K from 37.2K last month.

U.S. crude oil inventories decreased more than expected last month. Energy Information Administration in a report, said that U.S. Crude Oil Inventories decreased to a seasonally adjusted annual rate of -0.553M from -5.200M in the previous month. Also, U.S. new home sales unexpectedly increased, pointing to sustained demand for housing.

Currencies: The dollar fell against the other major currencies on Wednesday, as there is an uncertainty surrounding Federal Reserve monetary policy and the U.S. election. The EURUSD traded higher between $1.0875 and $1.0946 The GBPUSD traded higher between $1.2157 and $1.2245. The USDJPY traded higher between ¥104.03 and ¥104.62

Crude oil: U.S. crude stocks unexpectedly fell in the latest week according official data on Wednesday. On the ICE future Exchange, North Sea Brent crude traded lower between $50.69 and $49.66 On the New York Mercantile Exchange, U.S. light crude oil traded lower between $48.88 and $50.09

Gold: The price of Gold on Wednesday fell. On the COMEX division of the New York Mercantile Exchange, gold traded lower in a range between $1277.15 and $1265.00 an ounce.

Indices:  Asian shares were narrowly-mixed on Wednesday. Moreover, Japan stocks rose, as gains in the Precision Instruments, Financial Services and Construction sectors led shares higher.  At the close in Tokyo, the Nikkei 225 added 0.15%. At the close in China, the Hang Seng decreased 1.02% change.

Germany and U.K. stocks fell, as losses in the Food & Beverages, Financial Services and Basic Resources sectors led shares lower.  Respectively, for the U.K. stocks, as losses in the Tobacco, Electronic & Electrical Equipment and Chemicals sectors led shares lower.  At the close in Frankfurt the DAX fell 0.44%. At the close in Paris, the CAC40 declined 0.14%. At the close in Madrid, the IBEX 35 increased 0.37%. Finally, at the close in London the FTSE100 decreased 0.85%.

U.S. Stocks were mixed on Wednesday.  At the close, the Dow Jones industrial average higher 0.16%. The S&P 500 decreased 0.18% and the NASDAQ fell 0.64%.

Economic Calendar
Thursday 27th October 2016:
 

Time

Currency

Events

Forecast

Previous

 7:00am

EUR

Spanish Unemployment Rate

19.30%

20.00%

8:00am

EUR

M3 Money Supply y/y

5.10%

5.10%

8:30am

GBP

Prelim GDP q/q

0.30%

0.70%

12:30pm

USD

Core Durable Goods Orders m/m

0.20%

-0.20%

12:30pm

USD

Unemployment Claims

261K

260K

12:30pm

USD

Durable Goods Orders m/m

0.10%

0.10%

2:00pm

USD

Pending Home Sales m/m

1.20%

-2.40%

11:30pm

JPY

Household Spending y/y

-2.60%

-4.60%

11:30pm

JPY

Tokyo Core CPI y/y

-0.50%

-0.50%

Posted: 10/27/2016 7:02:57 AM by Global Administrator | with 0 comments


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