19.09.13

Markets around the world, including Asia, gained on the Federal Open Market Committee decision not to taper the bond buying, as had been widely expected. Bank of Japan Board member, Takahide Kuichi, has warned that Japan cannot rely on other economies to bolster their exports going forward due to the slowdown globally, as other economies may not be showing growth that is on par with Japan. Japanese export figures show an increase of 14.7% in the year to August. USD/JPY was trading at 98.46 with a high of 98.54 and a low of 97.88 so far.

The NIKKEI closed at 14766.20 up 260.82 or 1.80%

European markets await UK retail sales figures for August today. Swiss CNB will issue their quarterly bulletin tomorrow. Cyprus is making progress according to the Troika report, saying the country has taken positive steps in stabilizing the financial sector. Credit controls are reportedly going to be lifted in January. European currencies all gained against the USD following the FED decision not to taper bond buying stimulus. CABLE was up almost 250 pips at the close yesterday, and is now trading at 1.6133 with a high of 1.6151 and a low of 1.6114 for the day so far.

The FTSE100 closed at 6558.82 down 11.35 points or minus 0.17% while the DAX closed at 8636.06 up 39.11 or 0.45%

The expected reduction in spending by the Federal Reserve didn’t happen, and this led to shockwaves in the markets. For lots of investors who had been expecting the tapering to begin yesterday had to reverse positions and the USD was shorted at high volume across the board. GOLD prices gained over $60 per ounce, and stocks rose, to all-time highs in some indices. EUR/USD was trading at 1.3537 with a high of 1.3545. Before the FED decision had been released the pair was trading at below 1.3375. Jobless figures are out today, with expectations for a 330k figure, up from 292k.

The DOW closed at 15676.90 up 147.21 points or 0.95%

Have a nice day.