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Market Review

Bank of Japan board member Yutaka Harada said the central bank should ease further "without hesitation" if the global economy changed sharply and also noted that the added yield curve control aim announced in September will aid   Japan to proceed steadily toward achieving the price stability target of 2%. In a report, Economic and Social Research Institute said that Japan’s Core Machinery orders fell less-than-expected last month, to -2.2%, from 4.9% in the preceding month.

The European Central Bank may discuss changes to QE next week but a decision could be delayed until December when the bank will also decide whether to extend the scheme beyond March. In a report, Eurostat said that Industrial production in the euro zone rose more-than-expected last month to a seasonally adjusted 1.6%, from -0.7% in the preceding month. In another report, Destatis said that Germany’s Wholesale Price Index rose more-than-expected last month to 0.4%, from -0.7% in the preceding month.

Job openings, a measure of labor demand in the US, dropped by 388,000 to a seasonally adjusted 5.4 million, the lowest level since December, after climbing to a record high in July. According to the minutes of the Fed's September policy meeting released, several voting Federal Reserve policymakers judged a rate hike would be justified "relatively soon" if the U.S. economy continued to strengthen.

Currencies: The dollar hovered near seven-month highs against the other major currencies in quiet trade, as investors mounted hopes for a 2016 U.S. rate hike. 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: U.S. oil futures dropped slightly, still close to a recent four-month peak, as investors evaluated a fresh round of talks between OPEC producers and other oil exporters to stabilize the global oil market. On the ICE future Exchange, North Sea Brent crude traded lower between $52.62 and $51.87 On the New York Mercantile Exchange, U.S. light crude oil traded lower between $51.17 and $49.91.

Gold: Gold prices remained close to four-month lows amid growing expectations for a 2016 rate hike by the Federal Reserve. On the COMEX division of the New York Mercantile Exchange, gold traded higher in a range between $1249.65 and $1258.70 an ounce.

Indices:  Asian shares were mixed ahead of Fed minutes from the September meeting. At the close in Tokyo, the Nikkei 225 lost 1.09%. At the close in China, Shanghai dropped 0.23%.

European stocks moved lower as investors remained cautious ahead of the minutes of the Federal Reserve’s latest policy meeting. At the close in Frankfurt the DAX declined 0.51%. At the close in Paris, the CAC40 lost 0.44%. At the close in Madrid, the IBEX 35 edged down 0.08%. Finally, at the close in London the FTSE100 dropped 0.66%.

Wall Street held most its modest gains after U.S. Federal Reserve meeting minutes did not clarify expectations on the timing for the next interest rate hikes. At the close, the Dow Jones industrial average added 0.09%. The S&P 500 gained 0.12% and the NASDAQ composite lost 0.15%.

Economic Calendar
Thursday 13th October 2016:

Time

Currency

Event

Forecast

Previous

Tentative

CNY

Trade Balance

365B

346B

12:30

USD

Unemployment Claims

252K

249K

12:30

USD

Import Prices m/m

0.10%

-0.20%

Tentative

GBP

BOE Gov Carney Speaks

 

 

15:00

USD

Crude Oil Inventories

0.4M

-3.0M

Posted: 10/13/2016 7:45:58 AM by Global Administrator | with 0 comments


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