Market Blog > September 2016 > Market Review

Market Review

The Prime Minister of Japan Shinzo Abe stated that the government would continue to work closely with the Bank of Japan, using all available policy tools, to defeat deflation and boost growth. The China Academy of Social Sciences (CASS) said that the country’s economy is expected to grow at an annual 6.6 percent in the fourth quarter and post overall growth of 6.7 percent for the full year.

ECB’s president Mario Draghi defended the euro zone low rate policy stating that low European Central Bank rates are necessary in order to restore growth, despite German criticism. The research group Gfk in its report, said that the index of Germany’s consumer climate fell to 10.0, from 10.2 in the preceding month. Bank of England Deputy Governor Minouche Shafik reduced the expectations of a further cut in interest rates this year as the British central bank debates with how aggressively to respond to a slowdown following the Brexit vote.

Chair Janet Yellen stated the Fed may tighten annual bank stress tests that would raise capital requirements for big banks based on their test results. The Commerce Department said that total durable goods orders, which include transportation items, remained unchanged last month, compared to expectations for a decline of 1.4%. Core durable goods orders, which exclude volatile transportation items, dropped 0.4% last month, in line with forecasts.

Currencies: The dollar edged higher against the yen and euro on Wednesday, but gains were limited as traders awaited more U.S. economic data for clues on whether the Federal Reserve will hike rates this year. The EURUSD traded lower between $ 1.1237 and $ 1.1182. The GBPUSD traded lower between $ 1.3032 and $ 1.2980. The USDJPY traded higher between ¥ 100.26 and ¥ 100.82.

Crude oil: On the ICE future Exchange, North Sea Brent crude traded higher between $ 46.29and $ 49.49 On the New York Mercantile Exchange, U.S. light crude oil traded higher between $ 44.37 and $ 47.43.

Gold: Gold prices extended overnight losses to touch a one-week low, as market players awaited comments from FED officials. On the COMEX division of the New York Mercantile Exchange, gold traded lower in a narrow range between $1327.58 and $1317.80 an ounce.

Indices:  Asian shares were mixed on Wednesday with Tokyo down on comments that suggested further policy action to boost the economy. At the close in Tokyo, the Nikkei 225 declined 1.31%. At the close in China, Shanghai Composite edged down 0.33%.

European stocks were higher on Wednesday, as investors focused on a highly-anticipated meeting of major oil producers. At the close in Frankfurt the DAX added 0.74%. At the close in Paris, the CAC40 advanced 0.77%. At the close in Madrid, the IBEX 35 added 0.60%. Finally, at the close in London the FTSE100 advanced 0.61%.

Wall Street traded slightly higher as investors digested remarks on monetary policy from Federal Reserve chair Janet Yellen. At the close, the Dow Jones industrial average gained 0.60%. The S&P 500 added 0.47% and the NASDAQ composite edged up 0.24%.

Economic Calendar
Thursday 29th September 2016:

Time

Currency

Events

Forecast

Previous

All Day

EUR

German Prelim CPI m/m

0.00%

0.00%

6:35am

JPY

BOJ Gov Kuroda Speaks

 

 

7:55am

EUR

German Unemployment Change

-5K

-7K

12:30pm

USD

Final GDP q/q

1.30%

1.10%

12:30pm

USD

Unemployment Claims

260K

252K

2:00pm

USD

Pending Home Sales m/m

-0.10%

1.30%

8:00pm

USD

Fed Chair Yellen Speaks

 

 

11:30pm

JPY

Household Spending y/y

-2.10%

-0.50%

11:30pm

JPY

Tokyo Core CPI y/y

-0.40%

-0.40%

Posted: 9/29/2016 6:39:59 AM by Global Administrator | with 0 comments


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