20.06.2013

Asian and world stock indices dropped following the close of the FOMC meeting. Ben Bernanke gave a press conference afterward, and markets reacted to the downside and the USD gained across all pairings. XAUUSD has also dropped to the lows of April, down 17% since the start of the year. Chinese factory data figures are down, showing a lack of demand for the country’s produce. The economy in China is growing at the slowest rate in thirteen years. The Chinese overnight rates are up also following news early this month that China Everbright Bank failed to pay 6 billion Yuan (Renminbi) when it came due.

The NIKKEI closed at 13014.60 down 230.64 points or minus 1.74%

The Bank of England’s outgoing Governor, Mervin King, gave his last speech in which he said more needs to be done to regulate British banks, to ensure there is no further threat to the taxpayer. Incoming Mark Carney, who takes over next month, intends to boost Britain’s economy but it remains to be seen as to how he will go about this. CABLE is trading at 1.5456 with a high of 1.5493 and a low of 1.5426 so far. Euro Zone figures released today include PMI and Britain’s retain sales figures are also put out this morning.

The FTSE100 closed at 6270.69 down 78.13 or minus 1.23% while the DAX closed at 8049.64 down 147.44 points or minus 1.80%

Ben Bernanke yesterday told the world that the $85 billion bond buying stimulus could be tapered off should employment figures continue to grow as expected. Bernanke said the banks expectation of 2% inflation is attainable. The USD gained across all pairs on the news, and stocks and bonds sold off. USD/JPY was trading at 0.9797 with a high of 0.9801 and a low of 0.9619 so far, up from the 0.9500 area yesterday.

The DOW closed at 15112.20 down 206.04 or minus 1.35%

Have a great day.