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Market Review

Bank of Japan Governor Haruhiko Kuroda stated on Thursday that he does not believe that the central Bank will run out of government bonds to buy for its quantitative easing programme.  The Australian Bureau of Statistics indicated in a report that Australia’s trade balance has increased from -2.410B to -2.010B in the previous month.

Senior officials of the ECB said that the ECB intends continue with its aggressive stimulus policy of negative interest rates and massive bond buying until it is satisfied with the outlook for euro zone inflation. IMF managing director Christine Lagarde indicated that Deutsche Bank and several other major banks have to revise their business models in order to sustain long term profitability in a very low interest rate environment. Official data on Thursday indicated that the German factory orders went up more than anticipated from 0.3% the previous month to 1.0%.

Official data from the Labour Department stated that the number of Americans filing for unemployment benefits dropped by 5000 from the previous week to 249000, showing strength in the labour market. The Energy Information Administration stated that the U.S Natural Gas Storage increased to 80B from 49B in the previous month.  Statistics Canada identified in a report that building permits increased more than anticipated to a seasonally adjusted annual rate of 10.4% from 3.4% the previous month.

Currencies: The dollar continued to go higher on Thursday against the other major currencies as expectations grow for a rate hike by the FED and strong U.S jobless claims data. The EURUSD traded lower between $1.1213 and $1.1140. The GBPUSD traded lower between $1.2760 and $1.2603. The USDJPY traded higher between ¥102.68 and ¥104.16.

Crude oil: Oil prices were higher on Thursday, with U.S. crude futures surpassing the $50-level for the first time since late June. On the ICE future Exchange, North Sea Brent crude traded higher between $51.33 and $52.65. On the New York Mercantile Exchange, U.S. light crude oil traded higher between $49.34 and $50.58.

Gold: The price of Gold on Thursday carried on struggling and sinking to the lowest level in nearly four months, as investors turned their attention to the Fed’s rate hike. On the COMEX division of the New York Mercantile Exchange, gold traded lower in a range between $1269.41 and $1249.60 an ounce.

Indices: Asian shares edged up on Thursday as a result of strong U.S economic data as growing prospects of a U.S rate hike. At the close in Tokyo, the Nikkei 225 advanced 0.47%. In China, Shanghai Composite was closed as markets are shut for a week-long holiday. At the close in Hong Kong, the Hang Seng added 0.69%.

The European stocks were down on Thursday. At the close in Frankfurt the DAX declined 0.16%. At the close in Paris, the CAC 40 dropped 0.22%. At the close in Madrid, the IBEX 35 lost 0.24%. Finally, at the close in London the FTSE100 went down 0.47%.

Wall Street opened to some extent lower on Thursday by way of solid economic data and comments from FED officials claiming that monetary policy could be tightened by the end of the year. At the close, the Dow Jones industrial average lost 0.07%. The S&P 500 added 0.11% and the NASDAQ composite went down 0.17%.

Economic Calendar
Friday 07th October 2016:

Time

Currency

Events

Forecast

Previous

7:30am

GBP

Halifax HPI m/m

0.00%

-0.20%

8:30am

GBP

Manufacturing Production m/m

0.40%

-0.90%

8:30am

GBP

Goods Trade Balance

-11.1B

-11.8B

12:30pm

CAD

Employment Change

8.5K

26.2K

12:30pm

USD

Average Hourly Earnings m/m

0.20%

0.10%

12:30pm

USD

Non-Farm Employment Change

171K

151K

12:30pm

USD

Unemployment Rate

4.90%

4.90%

2:30pm

USD

FOMC Member Fischer Speaks

 

 

Posted: 10/7/2016 7:15:30 AM by Global Administrator | with 0 comments


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