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Market Review

BOJ Governor Haruhiko Kuroda stated that the central bank will follow the most appropriate yield curve to achieve its 2% inflation target and that it is ready to ease policy further by cutting its short- and long-term interest rate targets. The Ministry of Economy, Trade and Industry revealed that Japan's retail sales dropped 2.1% in August. China’s benchmark money-market went up to a fourteen month high as the central bank drew funds from the financial system to meet quarter-end requirements.

Data form the European Commission indicated that the economic sentiment in the countries sharing the euro was better than anticipated in September due to a rebound of confidence in industry in the biggest economies. The Federal Statistical Office Germany stated that German consumer price inflation increased to 0.1%, from 0.0% in the previous month and that the unemployment rate was unchanged at 6.1%. The U.K Net Lending increased from 3.8B to 4.5B according to the Bank of England.

There was a high level of optimism over the health of the U.S economy as data showed that the GDP in the 2nd quarter was better than expected. The number of people filing for unemployment benefits in the U.S has risen at a lower level than it was anticipated. The U.S pending home sales surprisingly declined in August reaching its lowest level since the beginning of the year.

Currencies: The dollar trimmed gains against other major currencies on Thursday following the release of weak U.S. pending home sales data. The EURUSD traded higher between $ 1.1199 and $ 1.1248. The GBPUSD traded lower between $ 1.3053 and $ 1.2956. The USDJPY traded higher between ¥ 100.86 and ¥ 101.82.

Crude oil: Oil prices went up on Thursday showing optimism over OPEC's first output cut plan in eight years. On the ICE future Exchange, North Sea Brent crude traded higher between $ 48.55and $ 50.39 On the New York Mercantile Exchange, U.S. light crude oil traded higher between $ 46.63 and $ 48.27.

Gold: Gold prices extended overnight losses to touch a one-week low, as market players processed better than expected U.S. economic data. On the COMEX division of the New York Mercantile Exchange, gold traded lower in a narrow range between $1316.45. and $1325.60 an ounce.

Indices:  Overall the Asian shares went up on Thursday. At the close in Tokyo, the Nikkei 225 went up by 1.39%. At the close in China, Shanghai Composite edged up 0.34%.

European stocks were mixed on Thursday. At the close in Frankfurt the DAX declined 0.31%. At the close in Paris, the CAC40 advanced 0.26%. At the close in Madrid, the IBEX 35 added 0.64%. Finally, at the close in London the FTSE100 advanced 1.02%.

Wall Street was down on Thursday. At the close, the Dow Jones industrial average fell 1.07% The S&P 500 fell 0.85% and the NASDAQ composite went down 0.93%.

Economic Calendar
Friday 30th September 2016:

Time

Currency

Events

Forecast

Previous

12:00am

JPY

BOJ Gov Kuroda Speaks

 

 

1:45am

CNY

Caixin Manufacturing PMI

50.1

50

6:00am

EUR

German Retail Sales m/m

-0.20%

1.70%

8:30am

GBP

Current Account

-30.5B

-32.6B

8:30am

GBP

Final GDP q/q

0.60%

0.60%

9:00am

EUR

CPI Flash Estimate y/y

0.40%

0.20%

9:00am

EUR

Core CPI Flash Estimate y/y

0.90%

0.80%

12:30pm

USD

Personal Spending m/m

0.20%

0.30%

1:45pm

USD

Chicago PMI

52.1

51.5

2:00pm

USD

Revised UoM Consumer Sentiment

90.1

89.8

Posted: 9/30/2016 6:56:22 AM by Global Administrator | with 0 comments


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