09.08.13

Chinese Inflation figures are steady, with trade data out better than expected. The figures helped markets to steady from a three day slump. Japanese debt has reached an all-time high, up 1.7% since last quarter, and an expected sales tax increase could hamper growth in the area, although it would give the government much needed finances. The Bank of Japan meeting minutes are out on the 13^th of August. USD/JPY was trading at 96.63 with a high of 96.96 and a low of 96.32 so far.

The NIKKEI closed at 13615.20 up just 9.63 points or 0.07%

France had a disappointing result this morning when Industrial Production figures came in lower than expected, month on month saw a 1.4% decline, when the expectation was for less than half a percent drop. Italian Consumer Price Index figures will be out later today. The United Kingdom trade balance figures will be closely watched today. A figure of GBP-8.4bn is expected. Mark Carney the incoming Bank of England governor wants British banks to strengthen their balance sheets further, saying although great improvements had been made, more work needed to be done to finish the job. GBP/USD was trading at 1.5539 with a high of 1.5553 and a low of 1.5527 so far.

The FTSE100 closed at 6554.33 up 24.65 or 0.38% while the DAX closed at 8338.96 up 20.64 or 0.25%

US stocks reversed a three day slump on positive jobless figures and Chinese data. US social welfare benefit recipients’ figures are at the lowest level since the last recession. The forth Federal Reserve President has come out and spoken of bond purchase reductions or tapering this week. This time it was Cleveland Federal Reserve Bank President Sandra Pianalto. She said if the labour market conditions improve further, the tapering could be warranted. EUR/USD was trading at 1.3378 with a high of 1.3389 and a low of 1.3369 so far.

The DOW closed at 15498.30 up 27.65 points or 0.18%

Have a nice weekend.