Aug 22


  • BY: Nati
  • August, 22nd, 2013 7:31 +00:00

Asian markets, particularly emerging markets like India and Thailand have been losing ground on account of the US Federal Reserve action or inaction. Speculation as to when the FED will reduce monetary stimulus has seen the USD rise against most currencies recently, and investors have been moving money from places such as Thailand, India and China back to USD investments. Japan has upgraded the severity of the Fukushima to a level three from a level one. The potential for damage to environment and industries such as fishing in the area could be great if the disaster isn’t dealt with in a timely fashion. The USD/JPY was trading at 98.17 with a high of 98.33 and a low of 97.58 so far.

The NIKKEI closed at 13365.20 down 59.16 or minus 0.44%

European Purchasing Managers' Index figures are released today for France, Germany and the Euro Zone. European share prices were largely unaffected by yesterday’s FOMC meeting minutes. Greece is going to be a major topic of Germany’s upcoming election it seems. German Finance Minister Wolfgang Schaeuble predicts Greece would need a new bailout, leading Chancellor Angela Merkel to try to deflect the issue saying the new bailout can only be dealt with in mid-2014 before adding that “Greece has been making very, very good progress in recent months and we want that progress to be continued.”

The FTSE100 closed at 6390.84 down 62.62 or minus 0.97% while the DAX closed at 8285.41 down just 14.62 points or minus 0.18%

Yesterday saw the release of the FOMC meeting minutes, and as expected the markets saw the USD strengthen. The minutes offered few clues as to when the actual taper would begin, and the text was unclear in parts and indecisive in others. The minutes said some members emphasized the importance of patience, while others said it might soon be time to slow the pace of the bond buying. Bond Yields rose, and the USD gained ground against both the JPY and the EUR. EUR/USD was trading at 1.3330 with a high of 1.3358 and a low of 1.3321 so far, the pair was trading above 1.34 for a short spell this week, the highest since February.

The DOW closed at 14897.50 down 105.44 or minus 0.70%

Have a nice day.