Aug 02


  • BY: Nati
  • August, 02nd, 2013 7:28 +00:00

Asian stocks are up today, helped by European Central Bank assurances that their monetary policy will keep rates low for the foreseeable future, and an optimistic outlook in the US. Australian Producer Price Index figures were lower than expected, out at 1.2% year on year versus the 1.6% expected. AUD/USD was trading at 0.8915 with a high of 0.8943 and a low of 0.8887 so far while the USD/JPY was at 99.61 with a high of 99.69 and a low of 99.27 so far. The Reserve Bank of Australia meets next week, and now the possibility of a rate cut has increased following the PPI figures.

The NIKKEI closed at 14466.20 up 460.39 or 3.29%

Yesterday saw the European Central Bank and the Bank of England leave benchmark rates unchanged as had been expected. ECB President, Mario Draghi, said there is commitment to keep borrowing costs low for as long as Europe struggles to recover. British Construction Purchasing Managers Index figures will be out today, and expectations are for a figure of 51.5, up from 51.0 last month. CABLE was trading at 1.5113 with a high of 1.5134 and a low of 1.5102 so far.

The FTSE100 closed at 6681.98 up 60.92 or 0.92% while the DAX closed at 8410.73 up 134.76 or 1.63%

US Non-farm Payroll figures are out today and improvements will heighten the expectation that the FED will begin tapering in September although some doubts have entered the market as to the confidence of the FED in the strength of the economic recovery. The minutes of this week’s meeting are out on the 21st of August and these will be studied in detail when released. The minutes could give traders a better idea of when the tapering will commence, or what signs to look for that would necessitate a change of strategy. EUR/USD was trading at 1.3217 with a high of 1.3223 and a low of 1.3189 so far.

The DOW closed at 15628.00 up 128.48 or 0.83%

Have a great weekend.