Spreadex Market Analysis Update: Asian Bourses Showed Mixed Results”

AM Analysis: “Asian bourses showed mixed results” – Alex Conroy
Asian bourses showed mixed results last night after a stronger yen drove the Nikkei down with exporters taking a hit. The BoJ board’s minute meetings were released yesterday highlighting revealing tensions and difficulties in meeting the 2% inflation target, undoubtedly the main goal of the BoJ’s QE policy undertaken since April. The tensions revealed in the minutes are raising further questions about Abenomicswhose aggressive easing policy already has investors split. The MSCI Asia pacific added a further 0.1% last night taking the total rise to over 9.6% for the year mainly driven by speculation on the Fed’s tapering policy.

Gold is making headlines again this morning with the daily meeting of the 5 banks to set the price of gold coming under scrutiny. The CFA are looking into the process and the possibility that traders involved in the pricing process have an unfair advantage due to their unique position and that the trickle down process for gold information is an obstacle to fair trading. After a month of declines and Goldman Sach’s forecasting another large price decline in 2014 this could signal further downward trading for Gold.

PM Analysis: “US equities have opened largely mixed this afternoon” – David White
US equities have opened largely mixed this afternoon, with participants happy to own risk against record high prices for the time being. One important measure of value, how much investors are charged today for future earnings, is not at record highs however. This allows for the argument that corporate earnings have outpaced the recovery in prices rebased against pre-crisis levels. It would seem the market has yet to become too optimistic, something Ms Janet Yellen voiced to the senate banking committee last week.

The FTSE 100, led by basic materials, is once again underperforming. GLEN and ANTO lag, down 2.52 per cent and 2.33 per cent respectively. The Dax holds above 9,290.

Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk.