Thursday, April 28, 2016

Fed and BoJ take time. EU grants falling in the wake of the collapse of Tokyo – The Republic

MILAN – 12:45 pm. The Japanese Central Bank does not extend its support to the economy of the Rising Sun: the BoJ opts to adopt a wait and see policy and check well what the impact of negative rates before taking further steps. A position that destroys Tokyo, while the stock markets in the wake of weak EU deal.

The governor Haruhiko Kuroda has disappointed market expectations, which for a small majority were expecting some kind of intervention, but has so stressed the ‘independence of his institution with respect to external pressure: the bet is that negative rates could lead to an increase in lending to the real economy, while the temporary strengthening of the yen is not yet considered sufficiently dangerous. A decision that follows closely around the position announced by the Fed, which as expected has not touched the rates and is shown accommodating: the ascent path to the cost of money will be tied to the macro data that arrive in the coming months.

the two monetary policy decisions – both marked all’immobilsmo – have been the focus of market reaction: in the morning, the Tokyo Stock Exchange closed down sharply, paying particular the postponement the objective of inflation to 2% by the BoJ. On the other hand, the latest figure released on prices was disappointed with a 0.3% core inflation in March. After opening in the positive, the Nikkei has changed direction ending the trading day with a fall of 3.61% and the loss of 624 points at 16,666.05 share. The failure of monetary expansion increases has taken off the yen at the exchange rate with the dollar, marking the biggest daily increase in eight months. The Japanese currency rose to 108.8 against the dollar. L ‘ moves above $ 1.135. Last night, however, Wall Stret closed countered with the Dow Jones index rising 0.28% to 18,042 points, while the Nasdaq lost 0.51% to 4,863 points: paid dear some disappointing quarterly tech, from Apple, while markets are closed Facebook has released positive accounts.

in Europe, the price lists follow the Asian weakness: a Square Business FTSE Mib recover part of the losses to -0.45%, while watching carefully to Generali and RCS, both involved in the meetings. The spread between BTP and German Bund remained at the levels of the vigil to 124 basis points (123 yesterday). The yield of the Italian-year bond was down 1.46%. The Treasury has placed all the 4.75 billion euro of BTPs at 5 and 10 years in the auction today, with rising interest rates from record lows reached in March. On the five-year average yield rose to 0.49% from 0.34% in March and on the ten-year rate rises to 1.51% from 1.24% previously. CCTeu also awarded with 2023 deadline to 3 billion at 0.59% rate. Still in the red the other of the Old Continent lists: London yields 0.8%, Frankfurt and Paris recede by 1.1%.

on the macroeconomic front, back in Japan there has been a jump in March industrial production (+ 3.6%), while the unemployment rate fell to 3.2%. Weak retail sales, fell 1.1%. In Europe it looks instead to the German unemployment rate in April and inflation in the same month. In Italy, the Minister of Economy and Finance, Pier Carlo Padoan meets the Vice President of the European Commission, Valdis Dombrovskis. In April, after three consecutive months of decline, the European Commission’s index measuring the confidence in the economy business and consumers rose by 0.9 points in the euro area reaching a total of 103.9 points, in the EU rose by 0.5 points reaching a height of 105.1 points. In the US, in the afternoon, we expect the preliminary estimate of first quarter GDP and the trend for unemployment benefits. Among other Asian markets, held in Hong Kong (+ 0.3%), while Shanghai closed 0.29% in the red.

the price of the oil opens down, after touching the highest since the beginning of the year. On Asian markets, Light crude futures WTI give 25 cents to $ 45.08 and Brent futures retreat from 27 cents to $ 46.91. Yesterday the weekly US stocks rose in line with expectations coming to 540.6 million barrels, the highest level since October 1929. The ‘ Gold is on the rise in Asian markets after the decision of the Central Bank Japanese not to strengthen the economic stimulus: bullion for immediate delivery gained 0.4% to $ 1,247.6 an ounce.

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