Asia
The Nikkei 225 rose 1.34 per cent on talks of Japan implementing easing measures. The Shanghai Composite in China gained 0.07 per cent on the back off positive PMI data. The Hang Seng in Hong Kong rose by 0.10 per cent. The NZSE 50 shrunk by 0.23 per cent, which was surprising after the New Zealand fourth quarter GDP figure gained by 1.5 per cent, higher than the expected 1.2 per cent.
US
US stocks closed higher yesterday after the finish of the Fed reserve 2 day meeting, which said that the interest rates will not be changed for the time being. By the end of US session the DJIA was up by 0.39 per cent, the S&P 500 gained 0.67 per cent and the NASDAQ was up 0.78 per cent.
Europe
European stocks managed to end higher on Wednesday, as the world waits to see what will happen next in Cyprus after their government unanimously rejected the tax levy. The EURO STOXX 50 climbed 1.52 per cent, the French CAC 40 rebounded 1.22 per cent and the German DAX 30 climbed 1.04 per cent.
Forex
Currency traders still seem fairly unfazed by the events in Cyprus. The trading volume is fairly low, supported by the fact that Bernanke chose to leave interest rates unchanged yesterday.
The GBP held strong against the USD after the Fed’s comments, with the GBP/USD pair trading up 0.20per cent at 1.5128. The GBP was down against the EUR with the EUR/GBP up 0.43 per cent, to trade at 0.8571 and down against the YEN, with the GBP/JPY trading at 145.13 a gain of 1.00 per cent.
The USD was lower against all of the major currencies in overnight trading. Concerns over Cyprus that pushed investors into the USD safe haven started to weaken. The EUR/USD gained 0.02 per cent to trade at 1.2935. The JPY which is the current safe haven currency is trading higher. The USD/JPY pair sank to 95.67.
Commodities
Announcements from the US yesterday: the world’s biggest oil consumer is readying itself to lose its status as a net importer. Oil prices dropped for May delivery by 0.28 per cent to $93.24 a barrel in overnight trading. Gold moved a little in the European trading session.
What’s happening today?
New BOJ Governor Kuroda is due to hold his first offcial press conference today. It is expected that he will reaffirm the Bank of Japan’s commitment to implementing intensive easing measures to fight deflation and boost growth. French and German PMI figures this morning are anticipated to show rises; this should push up the euro. Positive retail numbers expected out of the UK should carry on pushing up the GBP. U.S. home loan and jobless numbers are expected today; investors expect a rising rally in both. Watch out for Spanish trade balance and debt auctions which could muffle the euro’s rally.