Jul 11


  • BY: Nati
  • July, 11th, 2013 7:38 +00:00

Asian shares and Gold gained yesterday following Federal Reserve Chairman’s speech. In his speech, Ben Bernanke, outlined a highly accommodative course for the continuation of bond buying in the US. Resulting from this the USD sold off and investors switched over in to metals and shares. The Bank of Japan seems to have risen its’ assessment of the Japanese economy. They have mentioned economic recovery for the first time since before the 2011 earthquake. Monetary stimulus in Japan is, for now, taking effect. The stocks are performing well while the currency has weakened helping exports. USD/JPY is trading at 98.98 with a high of 99.90 and a low of 98.26 so far, down from yesterday’s open of 101.15.

The NIKKEI closed at 14472.60 up 55.98 points or 0.39%

European shares also gained following Ben Bernanke’s press conference yesterday. The EUR/USD gained, trading up from 1.28 to break above 1.30 again. Today the pair is trading at 1.3057 with a high of 1.3206 and a low of 1.2963 so far. CABLE was trading at 1.5069 with a high of 1.5193 and a low of 1.4998 so far. European Industrial Production figures are out tomorrow along with the Italian Consumer Price Index. Spanish outlook is improving, recent Commission report has said there is no need to inject further cash stimulus into the country, meanwhile Greece and Portugal have each received further funding. Greek and Portuguese austerity plans will continue for some time with public spending to be cut amid efforts to balance the books.

The FTSE100 closed at 6504.96 down 8.12 points or minus 0.12% while the DAX increased by 0.11% or 8.73 points to 8066.48 at closing.

The FED chairman’s speech yesterday hinted that the monetary stimulus may not end in September like many in the markets had expected. This shocked the markets and a major sell off in USD was seen. It had strengthened in recent weeks due to sentiment forming that the tapering of FED intervention would begin late this year. While it was revealed that half of the FED policymakers would like to see the tapering begin by year end, they would seek further reassurance that the US economy is in recovery mode, by way of increased employment and other indicators, before the would be happy to scale down the scale of the plan. USD/CHF was trading at 0.9517 with a high of 0.9597 and a low of 0.9406 so far.

The DOW closed at 15291.70 down 8.68 points or minus 0.06%

Have a nice day.