19.06.2013

The People’s Bank of China rate for an interbank day loan is close to all-time highs, at 6.9%. The high rates have led to retail and investment banks asking the central bank to lower the rates. Japanese exports were up last month on the back of the weakened JPY. The JPY is down almost 12% against the USD since Christmas. Today USD/JPY is trading at 95.11 with a high of 95.66 and a low of 94.98 so far. Japanese Prime Minister Abe said at the G8 summit, that he is confident the Japanese economy will be revived, and that this will have a positive effect on the global economy overall.

The NIKKEI closed at 13245.20 up 237.94 or 1.83%

The G8 meeting in Northern Ireland has led to a general agreement by the members to curb tax evasion. The United States, the UK, Canada, France and Italy have all agreed to set up registries, and it is hoped the momentum generated will encourage other nations to follow suit. Bank of England meeting minutes are released this morning following yesterday’s CPI and PPI figures being in line with expectations. CABLE was trading at 1.5649 with a high of 1.5668 and a low of 1.5617 so far.

The FTSE100 closed at 6374.21 up 43.72 or 0.69% and the DAX closed at 8229.51 up 13.78 points or 0.17%

The eagerly anticipated FOMC meeting concludes today, the big question regarding a tapering of the FED stimulus, could have quite an impact on the markets. FED Chairman Ben Bernanke will give a press conference following the release of a statement and economic forecasts. At the G8 over the past two days, President Obama and Prime Minister Putin sat on opposing sides of the table and of their support, or otherwise, of Syrian President Bashar al-Assad. It is doubtful any agreement was reached between the two leaders at the G8 on how to handle the delicate situation in Syria where a civil war is ongoing. Reportedly there have been 93000 deaths resulting from the fighting so far.

The DOW closed at 15318.20 up 138.38 or 0.91%

Have a nice day.