Jul 01


  • BY: Nati
  • July, 01st, 2013 7:41 +00:00

Chinese growth figures have fallen with the Purchasing Manager’s Index at 50.1 from 50.8 last month. Readings above 50 indicate expansion. Markets in Asia, excluding the Japanese Nikkei are down on fears that China is in a stage of slower expansion than previously. Moody’s Ratings Agency has not changed Australia’s AAA rating due to high government strength and low risk. AUS/USD was trading at 0.9195 with a high of 0.9205 and a low of 0.9120 so far ahead of the RBA’s announcement tomorrow.

The NIKKEI closed at 13852.50 up 175.18 or 1.28%

Mark Carney takes the reigns of the Bank of England today, and Thursday will see the first figures published from the bank with the new Governor at the helm. Greece, Cyprus, Spain and Italy have financial problems they are looking for solutions to this week. Greece is in talks to free up rescue loans. Cyprus is negotiating a debt swap to extend credit further. Spain will raise taxes to raise funds, and Italy plans cuts in public spending. French and German Purchasing Managers' Manufacturing Index (PMIs) will be released today. EUR/USD was trading at 1.3023 with a high of 1.3034 and a low of 1.3005 so far.

The FTSE100 closed at 6215.47 down 27.93 points or minus 0.45% while the DAX closed at 7959.22 down 31.53 or minus 0.39%

American Federal Reserve Board Members spoke on the possibility of and end or tapering of the bond purchasing programme. Some eyed September as a time to reevaluate the situation; others stated that the role of the FED is to make economic and financial decisions in a clear and transparent way. The FED purchasing has had a major impact on markets and speculation on when their input will decrease has led to high volatility and major moves in indices. President Obama is on an African visit, and on a stop in South Africa has been to Robben Island prison, where Nelson Mandela was held. The USD/ZAR was trading at 9.8536 with a high of 9.9169 and a low of 9.8451 so far.

The DOW closed at 14909.60 down 114.89 or minus 0.76%

Have a good week everyone.