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Market Review - 18/05/2009 21:03 GMT
Japanese yen weakens across the board on Japan vice finance minister Sugimoto's comments
The Japanese yen fell broadly on Monday after comments by a top official in Japan spurred speculation of intervention by authorities to curb further strength in the Japanese currency. Japan’s vice finance minister, Kazuyuki Sugimoto, told reporters in Tokyo on Monday that bolstering the economy is now the government’s ‘top priority’, he also said he was watching foreign exchange market moves carefully and hoped they would not have a negative effect on the economy. The yen dropped versus the U.S. dollar, euro and sterling to as low as 96.46, 130.67 and 147.94 respectively.
On the other hand, the greenback weakened versus most of the other major currencies as a rise in equity markets around the world and strengthening crude oil prices added to optimism that the global downturn may be slowing and boosted investor appetite for risk. In late New York session, the ICE future dollar index slid 0.46 percent to trade at 82.564, while the U.S. dollar dropped to session lows of 1.3565, 1.5349 and 0.5960 against the euro, British pound and New Zealand dollar respectively before stabilising.
On the data front, consumer sentiment in Japan rose to a 10-month high in April at 32.4 from 28.9 in the prior month, the biggest monthly jump since April 2007. A separate report from the U.S. indicated that the housing slump that started in 2006 may be nearing its end as confidence among U.S. homebuilders in May increased to its highest level since September (NAHB rose to 16 from 14 in April).
U.S. stocks rallied on Monday as solid results from U.S. home improvement retailer, Lowe’s Cos Inc, fueled hopes the recession was easing and consumer spending was stabilising. The Dow Jones industrial average rose 235 points, or 2.85 percent, to 8,504.
On Tuesday, economic data releases include Japan capacity utilisation, industrial production and machine tool orders, U.K. CPI and RPI, eurozone ZEW survey, German ZEW index, U.S. building permits and housing starts.
Japanese yen weakens across the board on Japan vice finance minister Sugimoto's comments
The Japanese yen fell broadly on Monday after comments by a top official in Japan spurred speculation of intervention by authorities to curb further strength in the Japanese currency. Japan’s vice finance minister, Kazuyuki Sugimoto, told reporters in Tokyo on Monday that bolstering the economy is now the government’s ‘top priority’, he also said he was watching foreign exchange market moves carefully and hoped they would not have a negative effect on the economy. The yen dropped versus the U.S. dollar, euro and sterling to as low as 96.46, 130.67 and 147.94 respectively.
On the other hand, the greenback weakened versus most of the other major currencies as a rise in equity markets around the world and strengthening crude oil prices added to optimism that the global downturn may be slowing and boosted investor appetite for risk. In late New York session, the ICE future dollar index slid 0.46 percent to trade at 82.564, while the U.S. dollar dropped to session lows of 1.3565, 1.5349 and 0.5960 against the euro, British pound and New Zealand dollar respectively before stabilising.
On the data front, consumer sentiment in Japan rose to a 10-month high in April at 32.4 from 28.9 in the prior month, the biggest monthly jump since April 2007. A separate report from the U.S. indicated that the housing slump that started in 2006 may be nearing its end as confidence among U.S. homebuilders in May increased to its highest level since September (NAHB rose to 16 from 14 in April).
U.S. stocks rallied on Monday as solid results from U.S. home improvement retailer, Lowe’s Cos Inc, fueled hopes the recession was easing and consumer spending was stabilising. The Dow Jones industrial average rose 235 points, or 2.85 percent, to 8,504.
On Tuesday, economic data releases include Japan capacity utilisation, industrial production and machine tool orders, U.K. CPI and RPI, eurozone ZEW survey, German ZEW index, U.S. building permits and housing starts.
