17.06.2013

Last week saw the JPY gain the most in four years. The gains have bought back the JPY to the level it was at before early April, when the incoming Bank of Japan Governor Kuroda announced the increased stimulus from the Bank. Investors in Japanese bonds, mainly banks, have been selling off. There is speculation that the low rates available have led to banks increasing rates to customers to make up for losses on bonds. The USD/JPY was trading at 94.95 with a high of 95.02 and a low of 94.18 so far. AUSSIE gained last week against the USD following a general sell off which began last April.

The NIKKEI closed at 13033.10 up 346.60 or 2.73%

Trade talks between the EU and the US, mentioned here last week, have been French backing after their concerns regarding film and digital media were excluded from the negotiations. European unemployment rates fell slightly, by 0.5%, since April’s high. G8 leaders meet in Northern Ireland today and tomorrow. The G8, will discuss taxation and the US and Russia are expected to address their respective involvement in Syria, where both are on opposite sides of the divide. The governments of Europe are trying to tackle youth unemployment, which they see as a major block to the continent recovering from the current recession. Spanish Prime Minister Rajoy has asked the ECB to offer better rates to small and medium businesses in an effort to get capital flowing again.

The FTSE100 closed at 6308.26 up just 3.63 points while the DAX closed at 8127.96 up 32.57 or 0.40%

The IMF on Friday asked the US Fed and the US government to continue with bond buying until the end of year at least and to reconsider the spending cuts known as sequesterisation. The IMF suggests the growth outlook of the US is at just 1.9% this year, while cutting next years expected growth outlook from 3% to 2.7%. FOMC meets this Tuesday and Wednesday the markets await to see the financial outlook expected over the next two years.

The DOW closed at 15070.20 down 105.90 points or minus 0.70%

Have a nice day.