08.07.2013

Asian shares fell on concerns the FED will reduce economic stimulus and fear that Chinese banks may tighten access to easy credit. Last month there was a spike in overnight Chinese rates, which say the rate as high as 25% at one point. Bank of Japan has an interest rate meeting this week. Japanese upper house elections take place this month. The EUR/JPY was trading at 129.87 with a high of 130.18 and a low of 129.39 so far.

The NIKKEI closed at 14109.30 down 200.63 points or minus 1.40%

United Kingdom jobs figures were positive for June growing at the fastest pace since early 2011. Greece this week has to convince the ECB and the IMF that they can meet targets in order to receive the next payment as part of the bailout deal. Greece has to redeem 2.2 billion worth of bonds in August and without the 8.1 billion aid payment it is unlikely they would meet their obligations. Trade figures for Germany were down, and tomorrow see the UK release their trade and industrial production numbers. CABLE was trading at 1.4886 with a high of 1.4897 and a low of 1.4858 so far.

The FTSE100 closed at 6450.63 up 75.11 or 1.18% while the DAX closed at 7928.37 up 122.37 or 1.57%

Federal Open Market Committee minutes for June are released on Wednesday followed by a speech by Chairman Ben Bernanke. Following positive jobs figures last week, a lot of speculation as to when the FED will ease off on the stimulus it has been offering. EUR/USD is trading at 1.2835 with a high of 1.2838 and a low of 1.2811 so far. USD/JPY was at 101.15 with a high of 101.52 and a low of 100.92 so far.

The DOW closed at 15135.80 up 147.29 points or 0.98%

Hope you all have a good week ahead.