Aug 19


  • BY: Nati
  • August, 19th, 2013 7:17 +00:00

Japanese export figures for July were up on the weaker JPY, with sales of cars and electronics making up the bulk of exports. China sees a rise in home prices led by speculation that the Government will not impose regulations to impede the increasing tide. Possible outcomes will be an increase in building to meet the demand for the assets which rose by as much as 17% in some areas. USD/JPY was trading at 97.74 with a high of 97.84 and a low of 97.35 so far. Gold was up by USD50 per ounce last week, and the AUSSIE gained ground also, with AUD/USD trading at 0.9197 with a high of 0.9231 and a low of 0.9180 so far. RBA board minutes release late tonight.

The NIKKEI closed at 13758.10 up 108.02 points or 0.79%

European area sees little of note taking place today, while political tensions could become something of a market mover. Italian Prime Minister, Enrico Letta, yesterday said that a collapse of government would undermine the economic recovery. Fears that convicted former Prime Minister, Silvio Berlusconi, could bring down the coalition if he is expelled from the Senate. In Germany, the focus is on the September election. Recent strength in the EUR could be rocked if either political situation comes in for any major surprises. EUR/USD was trading at 1.3322 with a high of 1.3342 and a low of 1.3214 so far.

The FTSE100 closed at 6499.99 up 16.65 or 0.26% while the DAX closed at 8391.94 up 15.65 or 0.19%

The United States saw data released on Friday relating to consumer sentiment and housing starts come in below expectations. The FED tapering induced interest rate spike is likely to have been the cause of the sentiment change. Rising borrowing costs naturally slow down demand for housing starts, coupled with regulations designed to avoid another sub-prime style crisis, lending has slowed, and liquidity in the debt market has declined. Egyptian violence has seen Canadian stock and energy companies performing well. The USD/CAD was trading at 1.0330 with a high of 1.0342 and a low of 1.0315 so far.

The DOW closed at 15081.50 down 30.72 points or minus 0.20%

Hope you all have a good week.