Jun 25


  • BY: Nati
  • June, 25th, 2013 8:53 +00:00

Japanese and Chinese share indices dropped following perceived weakness in the Chinese banking sector. Markets in China have dropped to last year’s lows. USD/JPY was trading at 97.45 with a high of 98.05 and a low of 97.27 so far. Chinese slowdown is viewed by some with great concern as the Chinese were responsible for about one third of global growth last year. Bank of Japan Deputy Governor Iwata said that the BOJ will refrain from using powers at their disposal to intervene in the markets at this time.

The NIKKEI closed at 12969.30 down 93.44 or minus 0.72%

Greek fallout from the decision to close the state broadcaster resulted in a cabinet reshuffle yesterday. On Friday the Democratic Left, one of the three coalition partners, withdrew their support for the Government. Fotis Kouvelis, head of the Democratic Left, said he was left with little choice following the closure. Italian Retail Sales figures are released this morning. Former Italian Prime Minister, Silvio Berlusconi, has received a seven year prison sentence in a case where he was charged with having sex with a minor. The EUR/USD was trading at 1.3131 with a high of 1.3150 and a low of 1.3108 so far.

The FTSE100 closed at 6073.92 up 44.82 or 0.74% while the DAX closed at 7758.68 up 66.23 or 0.86%

United States markets fell after Chinese losses. Dallas FED president, Richard Fisher, allayed investors’ fears asking them not to overreact to the plans to taper the bond buying programme. Durable goods orders are out later, as are the New Home Sales figures. The US government has been busy lately with a number of pressing issues in the news. The fallout of an information leak by Edward Snowden has led to Russian and Chinese involvement due to Mr. Snowden’s route following his departure from the US. Other news which may have a greater effect on the markets is the Syrian civil war, should the US arm the rebels it could lead to further conflict, with Russia in particular.

The DOW closed at 14659.60 down 139.84 or minus 0.94%

Have a nice day.