16.01.15

Good morning,

The main event yesterday was unexpected, the Swiss National Bank announcement. Markets reacted to the news with CHF trading suspended for some time. The move by the SNB to say they are not going to defend their currency peg with the Euro shocked markets across the globe. EURCHF fell from the 1.20 level to the current price of 1.0185

In Asia Japanese foreign bond investment was up while foreign stock investment declined. USDJPY trading at 116.56 Chinese GDP is expected to decline slightly, and we will see this actual figure in the early art of next week. AUDUSD trading at 0.8228 at time of writing, gaining some ground this week following positive employment numbers. The AUSSIE INDEX will remain closed Monday.

The NIKKEI was trading at 16864.16 down 244.54 points or minus 1.43%

In Europe today German Consumer Price Index figures are out early in the session. Swiss Retail Sales and Euro Zone Consumer Price Index data will round off the European data for today. Next week we will see the ECB Interest Rate decision Thursday, and the Bank of England Interest Rate decision will be published Wednesday. EURGBP trading at 0.7671 a level not seen since 2008.

The FTSE100 was closed at 6498.78 up 110.32 points or 1.73% while the DAX closed at 10032.61 up 215.53 points or 2.20%

Across the Atlantic US Consumer Price Index figures are due out, followed by the updated Industrial Production and Capacity Utilization figures for December. USDCAD trading at 1.1964 with Canada’s Interest Rate decision and Consumer Price Index figures due out next week. USOIL trading at $46.97; briefly trading above $50 per barrel during yesterday’s session for the first time in 10 days.

The DOW closed at 17320.71 down 106.38 points or minus 0.61%

Hope you all have a nice weekend.