Asian stock markets set the tone for European equities

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Following the optimism on wall street and in Asia, European markets started the day with growth. In the Asian session, the leader of growth was the Japanese Nikkei 225, which closed up more than 2%. The main event of the morning session was a meeting of the Bank of Japan as expected left policy unchanged and pledged to keep ultra-low rates, and also revised the inflation forecast to the downside. This has supported risk assets in General and Japanese stocks in particular, pushing the yen.
Meanwhile, the Chinese PMI in the manufacturing sector are not properly held on to the forecast, but investors ignored another signal of a slowdown in the second largest economy in the world.
The Russian stock market, having picked up the external positive and attempt recovery of oil prices, opened to good plus. Index Mosberg and RTS added an average of 1%. If the demand for oil will remain and Brent will find the strength to breakout of the level 77, and foreign investors will not lose the enthusiasm, the domestic courts will remain positive until the end of today’s session.
The ruble opened with a gap up but immediately started to roll back, and in the first hour of trading left in a small minus. Volatility “Russians” remains low. The dollar is testing the area of 65.50. and continue to focus on level 66 RUB, break of which is possible until the end of the week if the interest in risky assets fades.
Forex Euro and pound trying to recover after yesterday’s slump, but their feeble efforts look convincing on the combination of domestic political risks and a strong dollar, which is waiting for the report on private sector employment from ADP. The figure at 200 million or above will support the demand for the American currency ahead of Friday’s key release of statistics on the labour market, where the focus of players will focus on the indicators of earnings.
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Nathan Lambert
Head of research,
Global FX