• Home ::
• Technical ::
• Market View ::
• Daily Market Outlook

• Send
• Print
• Add To
• Rss

Daily Market Outlook

Fri, Nov 21 2008, 00:36 GMT
by AceTrader Team

AceTrader

Market Review - 20/11/2008 22:53 GMT

Japanese yen rallies as global stock markets tumble

The greenback fell sharply against the Japanese yen from 96.25 to 93.55 on renewed risk aversion as U.S. stock markets tumbled in late afternoon session due to as fears of a worldwide downturn that may become much deeper than initially thought. U.S. Treasury Secretary Henry Paulson said Federal authorities have the right tools and have taken the necessary steps to prevent a financial system collapse. He added that many challenges lie ahead and progress will not be in a straight line.  
  
U.S currency rose against the Swiss franc from 1.2101 to 1.2280 after the Swiss National Bank cut interest rates unexpectedly by 100 basis points and SNB said there was a higher risk of a marked slowdown in economic activity in Switzerland next year.  
  
Earlier, U.S. stocks rallied on a plan in the U.S. Senate to bail out automakers, however, U.S. Senate Democratic leader Harry Reid said there has been no viable auto industry plan ‘that can be passed by the House and Senate, and signed by the President.’ The greenback rose briefly to 96.25 versus the yen, tracking the initial rebound in U.S. equities, before falling again in late U.S. session to 93.55 as the three major U.S. stock indices tumbled. Dow Jones industrial average index fell sharply by 444.99 points or 5.56% to end at 7552.29. The Standard & Poor’s 500 index plunged by 54.14 points or 6.71% to close at 752.44. The Nasdaq Composite index dropped by 70.30 points or 5.07% to finish at 1316.12.  
  
On the data front, U.S. jobless claims rose to a 16-year high of 542,000 in the previous week. U.S. leading indicators declined by 0.8% in October versus 0.3% in September, while the Philadelphia Fed survey sank to an 18-year low of –39.3.  
  
The single currency rose briefly to 1.2595 before falling to 1.2433 in late U.S. session on renewed cross selling in euro especially versus the Japanese yen and Swiss franc. The British pound fell from 1.4996 to 1.4712 against the dollar. Euro, aussie and sterling tumbled versus the Japanese yen from 121.20 to 116.45, from 61.49 to 56.99 and from 143.88 to 138.13 respectively.  
  
Friday will see the release of German and eurozone manufacturing and services PMI respectively.

Published on  Fri, Nov 21 2008, 00:39 GMT