27.10.14

Good morning,

Over the weekend we saw European Bank Stress Tests take place, with 25 banks failing the tests due to not recognizing 136BN euros worth of bad loans. The 25 banks failing had been rumoured ahead of the result so it seems the market was expecting the news. Only eight lenders haven’t already plugged capital gaps out of the 25. EURUSD trading at 1.2690 Japan’s Sales Tax is seen to be the cause of a 7.1% contraction in personal spending in the second quarter. Retail Trade figures for Japan are due out in the next 24 hours with USDJPY trading at 108.02 The Reserve Bank of New Zealand will publish Interest Rate decision on Wednesday night, Thursday morning depending on your location.

The NIKKEI was trading at 15388.72 up 97.08 points or 0.63%

Europe today will see the M3 Money Supply data for September along with the IFO Expectations, Business Climate and Current Assessment for Germany released this session. Thursday will see the Unemployment Rate in Germany, which is expected to remain at 6.7% Friday will see the Consumer Price Index for the Euro Zone along with the Economic Area’s Unemployment rate which is expected to remain at 11.5% EURGBP trading at 0.7883

The FTSE100 closed last week at 6388.73 while the DAX closed at 8987.80

The US today will see Markit provisional Purchasing Managers Index results for October, as well as Pending Home Sales data for September. Looking ahead to later in the week we will see important Durable Goods Orders and Consumer Confidence figures tomorrow, with the FED Interest Rate decision on Wednesday. Thursday will see the updated Gross Domestic Product for America, while Canada’s GDP will be released on Friday. USDCAD trading at 1.1231

The DOW closed at 16805.41 on Friday gaining 127.51 points or 0.76% on the day.

Hope you all have a good week.