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Market Review - 13/04/2009 21:36 GMT
Dollar and yen decline broadly on optimism over China's stimulus plan
The dollar and yen fell broadly on Monday as a stronger performance in Asian equity markets after a report showed that China was considering more stimulus steps to promote growth, eroding the safe-haven appeal of U.S. and Japanese currencies. Earlier in the day, China’s central bank said it will ensure sufficient liquidity to sustain economic growth, dampening speculation regulators may seek to restrain credit after new loans jumped by six times to a record of 1.89 trillion yuan ($276.6 billion) in March.
In late New York trading, the ICE futures U.S. dollar index (which measures the dollar’s strength against a basket of six other currencies) declined 1.19 percent to trade at 84.517, with the greenback also moving lower against the yen to as low as 99.86 before stabilising.
The single currency, sterling and Swiss franc climbed to as high as 1.3395, 1.4869 and 1.1307 respectively versus the dollar, while yen also fell to session low of 134.02 versus the euro and 148.82 against the British pound. An increase in risk appetite led to buying in higher-yielding currencies such as the Australian dollar and New Zealand dollar, which surged to as high as 0.7328 and 0.5934 against the greenback, and 73.31 and 59.38 versus the yen.
U.S. stock markets were mixed on Monday, with the Standard & Poor’s 500 Index and Nasdaq Composite Index ending higher by 2.17 points to 858 and 0.77 points to 1,653 respectively because optimism on major banks quarterly results fueled financial stocks, while the Dow Jones Industrial Average index slid 25 points to close at 8,057 after Boeing said cuts in output of 'wide-body' planes and lower-than-expected airplane prices would hurt first-quarter profits.
On Tuesday, economic data releases include New Zealand retail sales, Australia NAB business confidence, and U.S. producer prices, retail sales and business inventories. At 17:30GMT, Federal Reserve Chairman Ben S. Bernanke will speak at Morehouse College on the topic ‘Four Questions about the Financial Crisis’.
Dollar and yen decline broadly on optimism over China's stimulus plan
The dollar and yen fell broadly on Monday as a stronger performance in Asian equity markets after a report showed that China was considering more stimulus steps to promote growth, eroding the safe-haven appeal of U.S. and Japanese currencies. Earlier in the day, China’s central bank said it will ensure sufficient liquidity to sustain economic growth, dampening speculation regulators may seek to restrain credit after new loans jumped by six times to a record of 1.89 trillion yuan ($276.6 billion) in March.
In late New York trading, the ICE futures U.S. dollar index (which measures the dollar’s strength against a basket of six other currencies) declined 1.19 percent to trade at 84.517, with the greenback also moving lower against the yen to as low as 99.86 before stabilising.
The single currency, sterling and Swiss franc climbed to as high as 1.3395, 1.4869 and 1.1307 respectively versus the dollar, while yen also fell to session low of 134.02 versus the euro and 148.82 against the British pound. An increase in risk appetite led to buying in higher-yielding currencies such as the Australian dollar and New Zealand dollar, which surged to as high as 0.7328 and 0.5934 against the greenback, and 73.31 and 59.38 versus the yen.
U.S. stock markets were mixed on Monday, with the Standard & Poor’s 500 Index and Nasdaq Composite Index ending higher by 2.17 points to 858 and 0.77 points to 1,653 respectively because optimism on major banks quarterly results fueled financial stocks, while the Dow Jones Industrial Average index slid 25 points to close at 8,057 after Boeing said cuts in output of 'wide-body' planes and lower-than-expected airplane prices would hurt first-quarter profits.
On Tuesday, economic data releases include New Zealand retail sales, Australia NAB business confidence, and U.S. producer prices, retail sales and business inventories. At 17:30GMT, Federal Reserve Chairman Ben S. Bernanke will speak at Morehouse College on the topic ‘Four Questions about the Financial Crisis’.
