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Market Review

Bank of Japan Governor Haruhiko Kuroda said on Wednesday that interest rates would rise when the central bank's 2 percent inflation target is achieved although it's unlikely borrowing costs would increase anytime soon. Former Japanese Economy Minister Heizo Takenaka said later that the Bank of Japan will lower its minus 0.1 percent interest rate further to achieve its 2 percent inflation target. The official Xinhua news agency said on Wednesday China has given out 500 million yuan in subsidies this year to support public-private partnerships (PPP, citing the state's top planning body.

In a report, markit said that Euro zone service sector activity rose unexpectedly in the last quarter mto 52.2, from 52.1 in the preceding quarter. In another report, Eurostat said that Euro Zone Retail sales fell less-than-expected last month to -0.1%, from 0.3% in the preceding month. The same SERVICE said that Retail sales in the euro zone fell less-than-expected last month to -0.1%, from 0.3%.

U.S. non-farm private employment rose much less than expected in September by a seasonally adjusted 154,000 last month, below forecasts for an increase of 166,000, dampening optimism over the health of the labor market. The U.S. trade deficit rose more than expected in August to $39.55 billion from a previous $39.47 billion as a rise in imports offset higher exports.

Currencies: The dollar dropped off the highs after US data announcements and as sterling rebounded from today’s 30-year lows. The EURUSD traded higher between $1.1190 and $1.1234. The GBPUSD traded higher between $1.2686 and $1.2772. The USDJPY traded higher between ¥102.68 and ¥103.66.

Crude oil: Oil prices added to gains, touching a fresh four-month high after data showed that crude supplies in the U.S. declined for the fifth week in a row. On the ICE future Exchange, North Sea Brent crude traded higher between $49.11 and $49.97 On the New York Mercantile Exchange, U.S. light crude oil traded higher between $51.20 and $52.10.

Gold: Gold prices turned lower, reversing today’s gains after data showed that the U.S. services sector grew in September to the fastest level in 11 months. On the COMEX division of the New York Mercantile Exchange, gold traded lower in a range between $1276.98 and $1262.04 an ounce.

Indices:  Asian shares were narrowly mixed on Wednesday despite solid retail sales data and with a week-long holiday in China affecting activity. At the close in Tokyo, the Nikkei 225 advanced 0.50%. At the close in Taiwan, the Hang Seng added 0.42%.

European stocks moved lower as talk of tapering the ECB quantitative easing plans spooked markets. At the close in Frankfurt the DAX declined 0.32%. At the close in Paris, the CAC40 lost 0.29%. At the close in Madrid, the IBEX 35 edged up 0.11%. Finally, at the close in London the FTSE100 dropped 0.58%.

Wall Street advanced for the first time in three days on Wednesday, powered by gains in financial and energy shares. At the close, the Dow Jones industrial average added 0.61%. The S&P 500 climbed 0.43% and the NASDAQ composite gained 0.50%.

Economic Calendar
Thursday 06th October 2016:

Time

Currency

Impact

Events

Forecast

Previous

All Day

CNY

 

Bank Holiday

 

 

06:00

EUR

 

German Factory Orders m/m

0.30%

0.20%

08:10

EUR

 

Retail PMI

 

51

08:30

GBP

 

Housing Equity Withdrawal q/q

-5.4B

-4.9B

11:30

EUR

 

ECB Monetary Policy Meeting Accounts

 

 

11:30

USD

 

Challenger Job Cuts y/y

 

-21.80%

12:30

USD

 

Unemployment Claims

255K

254K

Posted: 10/6/2016 6:39:31 AM by Global Administrator | with 0 comments


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