Jun 26


  • BY: Nati
  • June, 26th, 2013 8:02 +00:00

The People's Bank of China (PBOC) said it had helped some local banks and was ready to act again as the lender if needed. The markets in Asia reacted well to this announcement. The recent rate hikes in China could be due to the shadow banking industry where informal lending is regularly practised and the recent rate hike could be an initiative to curtail this industry. Australian Prime Minister, Julia Gillard, has asked her own Australian Labor Party to endorse her as leader before elections on September 14th. She is facing a challenge in the form of Kevin Rudd, whom has announced his intention to challenge for leadership of the party. The AUD/USD was trading at 0.9279 with a high of 0.9284 and a low of 0.9234 so far.

The NIKKEI closed at 12834.00 down 135.33 or minus 1.04%

British Finance Minister, George Osborne, will release plans today for further spending cuts in the UK which is expected to reduce spending by up to 11.5 billion pounds. Gold prices dropped to $1250 per ounce today. This is the lowest price since 2010 and down 22% since the start of April. Today will see a meeting of the EU Finance Ministers to further discuss plans on any future bailouts in the area. Last weekend saw similar negotiations break down when French and German views on how rules should be applied to a so called ‘bail in’ following a bank’s collapse. The EUR/USD was trading at 1.3077 with a high of 1.3086 and a low of 1.3054 so far.

The FTSE100 closed at6102.92 up just 1.01 or 0.02% and the DAX closed at 7824.22 up 12.92 or 0.17%

US figures for new home sales were up yesterday, which could be a sign of confidence in the economy, or it could be a fear that interest rates will rise following the hints that the QE by the FED will taper off. Contrasting opinion as to when the FOMC will begin tapering came from an unlikely source, when ECB President Mario Draghi said "In terms of monetary policy, price stability is assured, and the overall economic outlook still warrants an accommodative stance, the exit from which by the way is still distant." US GDP figures will be released today. The USD/JPY was trading at 97.46 with a high of 98.23 and a low of 97.32 so far.

The DOW closed at 14760.30 up 100.75 or 0.69%

Have a nice day.