String Of Conflinciting Japanese Data Gives Mixed Signals

Trading volume was once again low In the Asian overnight session, following yesterday’s string of important data releases. Traders remained cautious, waiting for central bank stimulus. Later in the day, the U.S. Federal Reserve will hold a policy meeting. Talk of European Central Bank interest rate cuts fills the investor forum. Some ECB policymakers made comments over the potential cut, suggesting that the bank would consider making cuts if economic releases continue to look bleak. Italy finally saw the formation of their new government led by PM Enrico Letta who swore to decrease taxes to help stimulate growth.

Japanese Data Released
In Japan, unemployment figures fell from 4.3 percent in February to 4.1 percent in March. This surpassed expectation of 4.3 percent amongst analysts. Japanese household spending also increased from February, with a 5.2 percent hike from just a 0.8 percent increase the previous month. Industrial Production gained 0.2 percent last month from 0.6 percent in February, underwhelming analyst estimates of 0.4 percent. Retail sales were down in March 0.3 percent from last year overriding estimates of 0.6 percent.

Stocks
The Nikkei 225 was kept in check by the raft of data releases dropping 0.43 per cent and then rebounding 0.09 percent lower. The Aussie Index S&P/ASX 200 was up 0.78 per cent, boosted by positive profit releases from the Australia and New Zealand Banking Group, which is the 3rd biggest bank in Australia. Another day of holiday celebrations in China, while the Hong Kong Hang Seng reopened today up 0.67 percent.

European stocks were up this morning on the back of the establishment of the new Italian government and the possible ECB rate cut. EURO STOXX 50 was up 0.21 per cent, the French CAC 40 was up 0.11 per cent and the German DAX 30 gained 0.78 per cent.

Forex
Pretty quiet night for the currencies; not much movement as traders remained on the sidelines waiting for potential ECB rate cuts. The USD undid some of its declines of yesterday, moving slightly higher against its counterparts. The EUR dropped 0.16 per cent against the USD and the USD/JPY decreased by a slight 0.04 per cent.

Commodities
Investor reticence followed through to the commodities markets, with Gold dropping 0.26 percent and Silver 0.07 percent as investors took profits from earlier gains. Natural Gas slid 0.18 per cent – as the warmer weather brings lower demand. Crude Oil was 0.24 per cent down on continuing worldwide economic recovery woes.

Today’s Outlook
Important Unemployment figures in Europe to watch out for. If the number goes up, this will directly impact the EUR. Meanwhile Gas and Oil inventory supplies will be released in the US before night-time Chinese Manufacturing PMI, making today an eventful day with perhaps some good volatility and volume for binary options traders to take advantage of.