The Trump effect seems to have resurfaced as investors warmed to his expected fiscal stimulus plans and the prospect of higher inflation coupled with lower taxes. How long this rally will last is also a topic of conversation and concern. These same things have boosted the U.S.dollar higher against the yen though the yen has regained some of its losses of late.
Japan, however, grew at a slower rate in the July-August quarter than previously thought, according to data out Thursday. The Wall Street Journal reported: "The economy grew at an annualized pace of 1.3% in the third quarter of 2016, down from a preliminary figure of 2.2%, the government said. Annualized growth in the first quarter was 2.8% and in the second quarter was 1.8%, both higher than previous estimates, it said. Such revisions happen every quarter as the government refines earlier estimates using new data."
It wasn't just the above mentioned items, however, that helped propel Asian shares as the European Central Bank is expected to continue its handouts to continue to stimulate growth in the eurozone. The ASX 200 rallied 1.2%; the Hang Send 0.7% and the Kospi moved 1.3% higher while in China the Shanghai Composite Index fell 0.1% as government concerns grew about aggressive insurance company stock buying. The ECB decision also aided Asian-Pacific government bonds, Reuters reported, with yields on Australia’s 10-year debt falling 6.3 basis points to bid at 2.743% and New Zealand’s 10-year debt yield down 5 basis points to bid at 3.20%, according to Thomson Reuters. Yields fall as bond prices rise.
The dollar index which measures the greenback against a basket of currencies, traded at 100.03 at one point. Meanwhile, gold was up at $1174.90, up 1.60. The decline in gold might be temporarily over setting the stage for a bear market rally.
No comments:
Post a Comment