Friday, January 29, 2016

The Bank of Japan port rates in the negative: Tokyo fly and drag the stock EU – The Republic

Milan – 10:15. The European markets dealing in net recovery, after the slip Eve and following the unexpected move by the Japanese governor Haruhiko Kuroda: The Bank of Japan (BoJ), the Japanese Central Bank has decided to bring in negative interest rates applied on Cash held by banks at the central bank, in excess of that regulation: the rate drops so to -0.1% from + 0.1%. The great part of the deposits, in any event, will remain remunerated or at least to zero rate. To respond to the economic weakness of Japan and the absence of inflation, then, he assured that it will cut the cost of money further, if necessary. The move – which follows what was done by Mario Draghi in Europe and gives new substance to the possibility that the ECB will put in place further stimulus measures in the coming weeks – did fly the Tokyo Stock Exchange.

L ‘ Nikkei , to be honest, was involved in a roller-coaster day, as the chart shows. Eventually it closed up 2.8%, dragging the other Asian Squares: Shanghai and Shenzhen , in China, have gained more than 3% and Hong Kong was up 2.54%. The move has sharply devalued the yen, which was carried into in 121 against the dollar. The European markets exploit towing Asia and the repositioning of investors, who can buy at prices of balance: Milan salt 2.15%, Frankfurt and Paris mark + 1.1% and London + 1%. The banking sector is the best of the Milan Stock Exchange, with MPS that does not start when price enters bargaining is rising markedly. To push the titles of credit there are plans to merge the institutions: BPM and Banco Popular are getting closer and closer to the wedding. Change euro-dollar down slightly, with the currency of the Old Continent that drops to 1.0896 greenbacks.

The Bank of Japan port rates in the  negative: Tokyo fly and drag the stock EU

The trend from the roller coaster in the last three days of the Tokyo Stock Exchange. We note especially the volatility of the last session, the announcement by the BoJ’s decision to bring in negative interest rates on excess reserves of financial institutions. Eventually the Nikkei gained 2.8%


As mentioned, the decision of the BoJ has come together to macroeconomic: the Japanese GDP of grow ‘ 1.5% in fiscal 2015, with inflation at 0.1%. Growth will remain at 1.5% in 2016, to slow in 2017 to 0.3%. “The risks are to the downside and include those of economies overseas.” Meanwhile, in December, the unemployment rate remained stable at 3.3% in 2015 and amounted on average to 3.1%, two points less than in 2014. Inflation, however, has stagnated at 0, 1% in the last month of the year and industrial production marked a fragile -1.4%. Europe stands out GDP of France , which marks a 0.3% economic in the fourth quarter of 2015 and a 1.3% annual: throughout 2015, the average growth was 1 , 1%, the strongest in four years. Dive, however, inflation Alps in January: the preliminary estimate is for a 1% monthly. Unexpected, however, the contraction of the Retail sales in Germany : -0.2% monthly in December against estimates for a 0.4%. Still, in Spain is the estimate of a GDP growth of 3.2% in 2015. In the USA are expecting the most important data: the GDP for the fourth quarter (see up 0.8%), the Chicago PMI, consumer confidence of the University of Michigan and the continuation of the season of quarterly.

oil more its recovery trend Brent at $ 35.56 per barrel, WTI at $ 33.86 a barrel. Yesterday, crude ended coaster for the rumors and denials of a possible agreement between Russia and Saudi Arabia to assess the production cut. The surprise decision by the BoJ caused a crush of the price of ‘ Gold on the Asian markets and then restabilize. The metal for immediate delivery fee now $ 1,115 an ounce after selling nearly 1%. Little blur the spread between BTPs and German Bunds: amounted to 108 basis points from 109 yesterday’s closing. The yield on Italian ten-year bonds down to 1.46% from 1.50% the reference Eve.

Last night the session Wall Street has finished rising, far from the lows seen in the morning when the indexes had veered into negative. The stroke of the rally of crude oil and Facebook (+ 15.52% to $ 109.11, a record) have offset a decline in biotech stocks and concerns over the global economy. In the end, the Dow gained 0.79%, the S & amp; P 500 added 0.55% and the Nasdaq 0.86%.

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