09.12.13

Asian stocks gained following the NFP figures on Friday, although yet to reach the highs of last month. Perhaps the dispute regarding the Senkaku islands between China and Japan, the areas two main players in the world economy, is holding investors back. There was Chinese data released which came in lower than expected with Consumer Price Index published at 3.0% below the 3.2% which had been forecast. USD/JPY was trading at 103.07 with a high of 103.13 and a low of 102.89 so far. Thailand is expected to hold a general election in the New Year following the ongoing protests after Prime Minister Yingluck Shinawatra dissolved Parliament.

The NIKKEI was trading at 15650.21 up 350.35 points, an increase of 2.29%

European figures released today include German Trade Balance, which came in below the 18B euros expected with a figure of 16.8B published. Portugal and Greece release their respective GDP figures for November, and the Swiss unemployment rate remained at 3.2% as expected. Later this afternoon, at 17.15 GMT, Bank of England’s Governor Mark Carney will make a speech. Expect the GBP to react around this time as investors listen closely to see which direction Central Bank planners are expected to take and manage their positions accordingly.

The FTSE100 closed at 6551.99 up 53.66 or 0.83% while the DAX closed at 9172.41 up 87.46 points or 0.96%

Following Friday’s positive NFP figures and the unemployment rate at just 7% there is renewed expectations that the FED will taper their bond buying program. Currently $85B per month is injected into the US markets by the Federal Reserve Bank. Janet Yellen takes over the reins from Ben Bernanke early in the New Year. 3 FED members make speeches later this afternoon. Lacker, Bullard and Fisher all are scheduled to talk starting shortly after Mark Carney’s speech. EUR/USD is trading at 1.3706 with a high of 1.3711 and a low of 1.3694 so far.

The DOW closed at 16020.20 up 198.69 or 1.26%

Hope you all have a good week.