FXHIGHWAY

 Breaking News

Japan's Nikkei soars seven percent on stimulus hopes, short covering

News Date: 15/2/2016 01:34:17
 
Japanese shares surged at the start of the week following a spate of dismal economic data, which nonetheless raised hopes for more stimulus measures from the Bank of Japan and the government. Aiding the stocks further, short traders closed off their selling positions to take profits after an 11-percent slump last week for the Nikkei, the worst since 2008.

Japan's GDP contracted 1.4% on an annual basis in the last quarter of 2015, worse than expectations of a 1.2% contraction, while matching another drop in the second quarter of last year. Revised Industrial Production on the other hand fell 1.7% m/m in December, missing forecasts of a 1.3% fall.

Bank of Japan has surprised investors in its last meeting by cutting interest rates into negative territory for the first time in Japan's history, setting them at -0.1%. Nonetheless, investors still hope for more cuts, or/and an expansion of the assets purchase program the bank has been deploying for a long time now.

Japan's Nikkei index jumped 7.16% to trade at 16,022, climbing above the level of 16,000 again. Other Asian markets were buoyed as well, with Australian shares driving up 1.64%, while Korea's KOSPI added 1.47%. China's shares on the hand lost nearly one percent, after trading was closed for the whole of last week for the lunar new year holiday.

Oil prices recorded small losses on profit-taking, after jumping 12% on Friday on new reports of a possible production cut from OPEC. Brent crude futures slipped seven cents, or 0.21% to $33.30 a barrel, while U.S. crude futures gave up 13 cents, or 0.42% to trade at $29.31 a barrel.  

Precious metals lost their appeal as safe havens as stocks recovered sharply, with gold futures falling 20 dollars, or 1.60% to $1,219 an ounce, while silver futures tumbled 37 cents, or 2.34% to trade at $15.42 an ounce. Copper on the other hand jumped 2.27% to $2.080 a pound.

Investors wait for a stream of data today, with the Eurozone's trade balance for December expected to show a surplus of 22.4 billion euros, slightly lower than November's 22.7B, but still at a largely healthy pace.

From New Zealand, retail sales for the fourth quarter of last year are expected to have grown 1.4% q/q, added to third quarter's 1.6% growth, which is positive for the Kiwi's next trading.

Latest news

After the long collapse, the American labor market is achieving some relative recovery, as the number of added jobs yesterday reached 4,800 million jobs, which exceeded all expectations, and came as
07-2020 03 00:34:55

Beginning with the latest developments in commodities, the gold futures contracts started this morning with a rise of 0.70%, to be traded at 1784.56 dollars an ounce, after opening at 1771.61 dollar
07-2020 01 03:47:05

Oil prices continued to lose their losses after the recovery in demand decreased, due to the high number of injuries they suffer, and Brent crude fell by the same percentage 2%, which in turn pays to
06-2020 29 05:49:33

The US dollar concluded its research for the week, sticking to its gains, which means that the demand remains on the latter, and this is due to it being a safe haven in light of fears and concerns ab
06-2020 26 06:34:32

The US stock indexes on Wall Street ended their trading high, thanks to the support of the economic data that led them to the rise, which showed that the contraction of the economy in the manufacturi
06-2020 24 00:45:21

More News

Logs

Advertisements