Breaking News

Yen slides after weak data, driving equities higher

News Date: 8/2/2016 01:25:31
 
Yen logged some noticeable losses after a batch of disappointing data from Japan which are likely to pressure the Bank of Japan to expand its stimulus package or cut interest rates deeper into negative territory. Japan's Average Cash Earnings, or wages growth, rose just 0.1% in December year-on-year, compared with expectations of a 0.7% growth, and a bellwether of persistently weak inflation and spending by households.

Another survey tracking the "Economy Watchers Sentiment" slumped in January to 46.6, down from December's 48.7, and far from the forecasts of 48.5. A reading below 50.0 indicates pessimism. Yen tumbled almost half a percent against the dollar to 117.39, limping away from a two-week high hit on Friday at 116.29. Euro advanced 0.33% versus the Japanese currency to 130.79, while sterling jumped 0.70% to 170.44.

The slide in yen's value cheered exporters as it makes them more competitive abroad, with Japan's Nikkei erasing earlier losses and jumping 1.08% to 17,008. Other Asian shares were largely flat, affected by the week-long holiday in China, which thinned trading. Australian shares traded at 4,975, while Korea's KOSPI gained 0.08% to 1,917.

Wall Street closed sharply lower on Friday, after new jobs slowed down unexpectedly in January to 151,000, compared to forecasts of 190,000. The NASDAQ Composite led the decliners, pummeled by weak earnings forecasts for tech companies, with the index tanking 146 points, or 3.25% to 4,363.

Other U.S. stock indices registered more contained losses by still heavy, with the Dow Jones Industrial Average giving up 211 points, or 1.29% to close at 16,204. Standard and Poor's 500 fell 35 points, or 1.85% to end at 1,880.

Oil prices gained some ground on hopes of cooperation between major oil producers to cut production volumes, as mentioned from the recent meeting between Saudi's oil ministry and his Venezuelan counterpart. Brent crude futures rose 30 cents, or 0.85% to $34.34 a barrel, while U.S. crude futures gained 25 cents, or 0.80% to trade at $31.13 a barrel.

Investors wait for a basket of data today, with German industrial production expected to have grown 0.2% m/m in December, compared to November's 0.3% drop, which would be positive for the euro.

For the whole of the Eurozone, the Sentix Investor Confidence survey is forecast at 7.2 for February, easing from January's 9.6, but still far from 0.0, which separates optimism from pessimism.

Latest news

Today, gold futures are down 0.69%, to be traded at $ 1916.25 an ounce. Previously, the contracts were traded in a lower session at a price of 1913.05 dollars an ounce. Gold is expected to find suppo
10-2020 22 02:02:18

The US stimulus package was discussed on yesterday by the Speaker of the US House of Representatives and Secretary of the Treasury Stephen Mnuchin, in an interview that lasted 45 minutes, and the dis
10-2020 21 01:27:37

US House of Representatives Speaker Nancy Pelosi set today, Tuesday, as the last date for the US Congress, to approve a new stimulus package bill before the presidential election date (November 3), w
10-2020 20 02:30:24

The talk about the implementation package, which is an American plan to support the economy in the face of the epidemic, has continued since last July, with the continuing spread of the Corona virus
10-2020 19 03:46:14

Futures contracts for gold declined with European trading after it was high in the Asian session : with the beginning of today’s hours, futures contracts rose by 0.66%, to be traded at a price
09-2020 21 09:52:41

More News

Logs

Advertisements