Oct 04


  • BY: Nati
  • October, 04th, 2013 7:43 +00:00

Overnight the Bank of Japan announced an unchanged rate of interest at 0.1%. The Bank of Japan will increase the monetary base and increase purchases of Japanese government bonds. The inflation target remains at 2% and the economy of Japan is said to be experiencing a moderate recovery and exports are generally picking up. The USD/JPY was trading at 97.04 with a high of 97.39 and a low of 96.94 so far.

The NIKKEI closed at 14024.30 down 132.94 points or minus 0.94%

European Producer Price Index (PPI) figures for August are released this morning at 9am GMT in what will be otherwise a quiet day as far as data releases are concerned. German PPI figures were released earlier and they missed expectations. Year on year was published at -0.5% when a reading of 0.1% had been forecast. Italian government has survived a no confidence vote and will now possibly move to expel ex-Prime Minister Silvio Berlusconi from parliament.

The FTSE100 was trading at 6446.30 down 2.74 or minus 0.04% while the DAX was reading 8575.82 down 22.09 or minus 0.26%

US Government shutdown has led to non-publication of employment reports. August saw a 7.3% unemployment figure. EUR/USD was trading at 1.3625 with a high of 1.3631 and a low of 1.3612 so far. The Government shut down now has focused minds on the possibility of a default on the 17th of October if the debt ceiling is not increased. Yesterday in a speech President Obama laid the blame for the current shut down at the door of the Republican Party, citing their failure to negotiate as the main reason behind the impasse.

The DOW closed at 14996.50 down 136.66 or minus 0.90%

Hope you all have a good weekend.