Market Blog > September 2016 > Market Review

Market Review

The Bank of Japan's nine board members are currently split over ways to stimulate the economy, or whether to stimulate it at all, as they prepare for a review of the central bank's already eased monetary policy, according to the Sankei newspaper report today.

In a report, the U.K. Office for National Statistics said that manufacturing production in the U.K. decreased by a seasonally adjusted 0.9% in July, worse than expectations for a decline of 0.4%. NIESR estimated that British economic growth slowed in the three months to August and there is a significant chance of a recession by the end of next year as the economy expanded by 0.3 percent in the three months to August, slowing from growth of 0.4 percent in the three months to July. German industrial production fell the most in 23 months in July. Output fell by 1.5 percent in July from June, way below forecast in a Reuters poll for an increase of 0.2 percent.

The number of job openings in the U.S. surged to an all-time high in July to 5.871 million from 5.643 million a month earlier. The report has garnered more attention lately, as Federal Reserve Chair Janet Yellen often cites the survey when assessing the condition of the US labor market.

Currencies: The dollar hovered moderately higher against the other major currencies on Wednesday, but gains were very limited as the previous session’s downbeat U.S. data lowered expectations for a rate hike by the Fed this year. The EURUSD traded higher between $1.124 and $1.1166. The GBPUSD traded higher between $1.3066 and $1.3158. The USDJPY traded higher between ¥102.86 and ¥103.53.

Crude oil: Oil prices were slightly higher as market participants diverted their focus to upcoming weekly data from the U.S. on stockpiles of crude and refined products. On the ICE future Exchange, North Sea Brent crude traded lower between $48.78 and $46.78 On the New York Mercantile Exchange, U.S. light crude oil traded lower between $46.41 and $44.52.

Gold: Gold prices were little changed downward, but still near a three-week high, as investors focused on the upcoming announcements of U.S. data and Fed speakers for further hints about the timing of the next interest rate hike. On the COMEX division of the New York Mercantile Exchange, gold traded lower in a range between $1315.93 and $1304.14 an ounce.

Indices:  Shares in Asia were mixed on amidst mixed economic announcements. At the close in Tokyo, the Nikkei 225 declined 0.41%. At the close in China, Shanghai Composite edged up 0.07%.

European stocks were higher, despite downbeat industrial production data from Germany and as investors remained cautious ahead of the European Central Bank’s upcoming policy meeting. At the close in Frankfurt the DAX added 0.62%. At the close in Paris, the CAC40 gained 0.61%. At the close in Madrid, the IBEX 35 soared 1.30%. Finally, at the close in London the FTSE100 advanced 0.30%.

Wall Street traded mostly lower on Wednesday after two Federal Reserve officials hinted at an interest rate hike as soon as this month. At the close, the Dow Jones industrial average lost 0.07%. The S&P 500 dropped 0.04% and the NASDAQ composite added 0.15%.

Economic Calendar
Thursday 08th September 2016:

Time

Currency

 

Forecast

Previous

Tentative

CNY

Trade Balance

372B

343B

11:45

EUR

Minimum Bid Rate

0.00%

0.00%

12:30

CAD

Building Permits m/m

3.20%

-5.50%

12:30

CAD

NHPI m/m

0.20%

0.10%

12:30

EUR

ECB Press Conference

 

 

12:30

USD

Unemployment Claims

264K

263K

15:00

USD

Crude Oil Inventories

0.6M

2.3M

Posted: 9/8/2016 6:52:22 AM by Global Administrator | with 0 comments


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