07.08.13

Japan’s NIKKEI was down 4%, and the JPY strengthened as expectations that the Bank of Japan will not expand the monetary stimulus further. USD/JPY was trading at 97.08 with a high near opening at 97.80 and a low of 96.97 so far. Australia’s Unemployment figures are due to be published tomorrow, expectations that a figure of 5.8%, up from 5.7%, would mark a four year high for the country. New Zealand’s dairy industry, one of the country’s main exports, has suffered following reports of contamination in some powdered milk products. The Finance Minister has assured markets that the issue can be contained.

The NIKKEI closed at 13824.90 down 576.12 or minus 4.00%

The Bank of England Inflation Report will be out this morning, and Swiss Consumer Price Index figures are also released, expectations are for a negative -0.4% down from 0.1% on the previous month. USD/CHF was trading at 0.9259 with a high of 0.9263 and a low of 0.9242 so far. CABLE was trading at 1.5331 with a high of 1.5363 and a low of 1.5317 so far. European Central Bank low interest rates are criticized by the German SPD candidate for Chancellor, Peer Steinbruck. The election in Germany will most likely focus on the Euro Zone economy. German Industrial Production figures will be released today, and an improvement on last month’s -1.0% is expected.

The FTSE100 closed at 6604.21 down 15.37 or minus 0.23% while the DAX closed at 8299.73 down 98.65 or minus 1.17%

FED tapering continues to be a topic of interest for the markets, and Chicago Federal Reserve Bank President, Charles Evans, said a wind down is likely over time, and that he could not rule out cutting bond buying as early as next month. EUR/USD was trading at 1.3284 with a high of 1.3315 and a low of 1.3279 so far. Initial Jobless Claims numbers will be out tomorrow, but today will see the release of Consumer Credit figures.

The DOW closed at 15518.70 down 93.39 points or minus 0.60%

Have a nice day.