28.06.2013

JPY weakened against most pairs. Japanese CPI and Industrial Production figures were positive and the Nikkei gained 3.5%. Housing starts in Japan rose 14.5 percent in May from a year earlier and Japanese Economics Minister Amari said that it is hard to keep interest rates low when all economic indicators are showing improvements. USD/JPY was trading at 98.84 with a high of 99.01 and a low of 98.35 so far. The PBOC has said they will promote reasonable lending growth. Recent rate hikes have recently shook the markets but now it seems the central bank is trying to reassure the markets.

The NIKKEI closed at 13677.30 up 463.77 or 3.51%

European youth unemployment is still a problem which needs to be dealt with. EU leaders are meeting this week and have highlighted unemployment and availability of credit to small businesses as important steps to grow the economy and improve economic outlook. 6 billion euros has been earmarked to support job creation over the next two years. Spain, who suffers with over 50% youth unemployment, yesterday set limits on debt and budget deficits in an effort to meet targets set by the EU. United Kingdom consumer confidence is high and French and Italian figures will be released today. EUR/USD is trading at 1.3048 with a high of 1.3075 and a low of 1.3030 so far.

The FTSE100 closed at 6262.94 up 19.54 or 0.31% while the DAX closed at 8027.28 up 36.53 or 0.46%

United States 30 year mortgage rates have jumped to above 4% for the first time in over a year, up from 3.93 to 4.46. Canadian GDP figures will be released later this afternoon. USD/CAD was trading at 1.0477 with a high of 1.0501 and a low of 1.0453 so far. Syrian conflict and Edward Snowden remain the two main news topics out of the US, relations between Russia and the United States are in focus as both sit at opposing sides of the table on the Syria conflict.

The DOW closed at 15024.50 up 114.35 points or 0.77%

Have a nice weekend.