Is this the end of the Draghi rally? With sovereign yields trending back to the upside and CDS spreads widening in Spain, Portugal and Italy. There are many unanswered political questions at this moment which is affecting risk sentiment considering the delicate nature of the Italian and Greek coalitions. Also putting a dent in the "risk-on" mentality is whether Spain's Mariano Rajoy will ask for another bailout and how Europe will band together to institute pro-growth measures across the economic union. The Italian MIB led indices to the downside, crumbling -2.39% followed by a -1.17% slide in the Euro Stoxx 50. The French CAC 40 trailed closely, falling -1.15%. EURUSD is mostly unchanged at 1.3046 after falling back below the 1.31 handle.
Tensions in Asia are heating up as the fight between China and Japan over the Senkaku Islands has reached national protest level on both sides. China has lashed out at Japan's annexation of the Islands, threatening to dump the $230 billion in Japanese bonds it owns. Today marks the end of a two-day Bank of Japan policy meeting. Economists and traders alike are increasing bets that the BoJ will announce further easing measures following the corresponding moves by the ECB, Federal Reserve, and PBOC. Major Asian indices are mostly higher following the easing expectations, led by a 0.30% gain in the Australian ASX followed by a 0.28% rise in the Hang Seng. The Nikkei has ticked up 0.20% while the yen has strengthened with USDJPY falling -0.20% to 78.680.
Following the messy European session, major American indices closed the session mixed as the Dow Jones outperformed peers, rising 0.09%. The Nasdaq and S&P 500 closed marginally lower, losing -0.03% and -0.13% respectively. As the immediate relief rally after the easing announcement has sputtered, the question remains how much of the rally was priced in by traders before the QE3 announcement? Risk-assets contracted as the major move witnessed yesterday was the drop in WTI crude oil which saw a decline of over $4 per barrel on the 17th and another volatile day yesterday with a $2 leg lower before rebounding to the $96 handle. Grains are leading the way higher for agricultural commodities led by 1.42% rally in soybean futures followed by the 1.24% gain in wheat. Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id
Tensions in Asia are heating up as the fight between China and Japan over the Senkaku Islands has reached national protest level on both sides. China has lashed out at Japan's annexation of the Islands, threatening to dump the $230 billion in Japanese bonds it owns. Today marks the end of a two-day Bank of Japan policy meeting. Economists and traders alike are increasing bets that the BoJ will announce further easing measures following the corresponding moves by the ECB, Federal Reserve, and PBOC. Major Asian indices are mostly higher following the easing expectations, led by a 0.30% gain in the Australian ASX followed by a 0.28% rise in the Hang Seng. The Nikkei has ticked up 0.20% while the yen has strengthened with USDJPY falling -0.20% to 78.680.
Following the messy European session, major American indices closed the session mixed as the Dow Jones outperformed peers, rising 0.09%. The Nasdaq and S&P 500 closed marginally lower, losing -0.03% and -0.13% respectively. As the immediate relief rally after the easing announcement has sputtered, the question remains how much of the rally was priced in by traders before the QE3 announcement? Risk-assets contracted as the major move witnessed yesterday was the drop in WTI crude oil which saw a decline of over $4 per barrel on the 17th and another volatile day yesterday with a $2 leg lower before rebounding to the $96 handle. Grains are leading the way higher for agricultural commodities led by 1.42% rally in soybean futures followed by the 1.24% gain in wheat. Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id
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