Market Blog > September 2016 > Market Review

Market Review

According to credible sources, the Bank of Japan will consider negative interest rates by shifting its prime policy target to interest rates from base money at its review next week. In a report, the Ministry of Economy, Trade and Industry said that Industrial production in Japan fell last month to a seasonally adjusted -0.4%, from -0.4% in the previous month.

In a report by Eurostat, Euro zone Industrial production fell more-than-expected last month, official data to a seasonally adjusted -1.1%, from 0.8% in the preceding month. The jobless rate in the U.K. was unchanged as per forecasts in July remaining at 4.9%, while the claimant count rose more than expected in August to a seasonally adjusted 2,400, compared to expectations for an increase of 1,800 people. Average hourly earnings, including bonuses fell less-than-expected last month to a seasonally adjusted annual rate of 2.3%, from 2.5% in the preceding month.

The U.S. import price index fell more-than-expected last month to a seasonally adjusted -0.2%, from 0.1% in the preceding month.

Currencies:  The U.S. dollar retreated from an eight-day high against the yen after skepticism grew that the Bank of Japan would intensify its stimulative monetary policies next week, while uncertainty about Federal Reserve policy pressured the greenback against other currencies. The EURUSD traded higher between $1.1211 and $1.1274. The GBPUSD traded higher between $1.3138 and $1.3240. The USDJPY traded lower between ¥103.35 and ¥102.25.

Crude oil: U.S. crude stocks unexpectedly fell in the latest week according official data on Wednesday. On the ICE future Exchange, North Sea Brent crude traded lower between $47.49 and $45.72 On the New York Mercantile Exchange, U.S. light crude oil traded lower between $45.43 and $43.44.

Gold: Gold prices struggled near two week lows, ahead of a closely-watched U.S. retail sales report on Thursday, which is expected to form the market's near-term interest rate expectations. On the COMEX division of the New York Mercantile Exchange, gold traded higher in a range between $1313.19 and $1325.91 an ounce.

Indices: Asian shares were mostly lower in cautious trade ahead of key central bank meetings in the U.S. and Japan next week. At the close in Tokyo, the Nikkei 225 declined 0.67%. At the close in China, Shanghai Composite fell 0.71%.

Europe stocks were mostly lower as oil futures moved in see-saw fashion today. At the close in Frankfurt the DAX edged down 0.08%. At the close in Paris, the CAC40 lost 0.39%. At the close in Madrid, the IBEX 35 dropped 0.25%. Finally, at the close in London the FTSE100 added 0.12%.

Wall Street edged mostly lower as investors focused on future interest rate hikes and as cheaper oil dragged down energy stocks. At the close, the Dow Jones industrial average lost 0.18%. The S&P 500 dropped 0.06% and the NASDAQ composite added 0.36% mainly due to APPLE’s surge.

Economic Calendar
Thursday 15th September 2016:

Time

Currency

Event

Forecast

Previous

08:30

GBP

Retail Sales m/m

-0.40%

1.40%

11:00

GBP

MPC Official Bank Rate Votes

0-0-9

0-9-0

11:00

GBP

Monetary Policy Summary

 

 

11:00

GBP

Official Bank Rate

0.25%

0.25%

12:30

USD

Core Retail Sales m/m

0.30%

-0.30%

12:30

USD

PPI m/m

0.10%

-0.40%

12:30

USD

Philly Fed Manufacturing Index

1.1

2

12:30

USD

Retail Sales m/m

-0.10%

0.00%

12:30

USD

Unemployment Claims

262K

259K

Posted: 9/15/2016 6:48:37 AM by Global Administrator | with 0 comments


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