24.06.2013

The Chinese share index, the CSI300 fell by over 5% today following the recent rate hikes. Some deals involved interest rates of 25%. The People’s Bank of China said that banks need to control the expansion of lending and to improve their liquidity management. Japanese companies with business links with China have also been affected and the NIKKEI reflects this. Australian dollar (AUD) continues to make new lows against the USD, AUD/USD trading at 0.9166 with a high of 0.9250 and a low of 0.9155 so far.

The NIKKEI closed at 13062.80 down 167.35 or minus 1.26%

Greek debt is being well managed according to Prime Minister Antonis Samaras. Samaras said that Greece is ‘ahead of the overall targets.’ European markets have been warned that the Euro Zone low interest rates will not be continuing forever. Head of Germany’s Bundesbank, Jens Weidmann said that ‘neither states nor the private sector should expect the current phase of low interest rates to continue permanently.’ EUR/USD was trading at 1.3102 with a high of 1.3113 and a low of 1.3078 so far.

The FTSE100 closed at 6111.04 down just 5.13 or minus 0.08%

Following last week’s FOMC meeting the USD has strengthened as confidence that the FED will taper bond buys and weakening the currency as the economy recovers and employment is at a reasonable level. The USD gained against the JPY and other majors. USD/JPY was trading at 98.36 with a high of 98.69 and a low of 97.95 so far, XAUUSD was trading at 1281.76 at time of writing.

The DOW closed at 14799.40 up 41.08 points or 0.28%

Hope you all have a good week ahead.