Nikkei Climbs and Yen Plummets After BOJ Boosts Stimulus
October 31, 2014 7:34 am
Japanese stocks soared 4.8% to their highest close since November 2007 and the yen skidded to near seven-year lows against the dollar on Friday, after the Bank of Japan surprised markets with fresh easing steps it called a pre-emptive move to stoke inflation. U.S. stocks rose on Thursday, boosted by a strong reading on quarterly economic growth and by another round of upbeat earnings reports including Visa, which accounted for nearly 140 points in the Dow industrials. The Dow closed up 221 points at 17195, the SP500 closed up 12 points at 1994.
USDJPY was up about 1.7 percent on the day after rising as high as 111.18 yen, its highest since January 2008. While the Dollar gained, the euro fell 0.3 percent to $1.2573, not far from Thursday’s low of $1.2545, which was its weakest since Oct. 6.
Spot gold dropped about 1 percent to $1,186.70 an ounce, Brent crude fell about 0.2 percent to $86.05 a barrel.
Within the equity space Supergroup, the British company behind the Superdry fashion brand cut its full-year profit guidance on Friday, saying it had become the latest retailer to see demand for its winter wares fall victim to an unusually warm autumn, the stock is currently down 10% trading at 793p.
Weak price pressure in Germany and Spain compounded the European Central Bank’s policy headache on Thursday but it is still expected to hold off on action next week, waiting to assess the impact of its new round of stimulus. Today sees the release of Final Eurozone CPI at 10.00am where the figure is expected at 0.4% vs 0.3% previous.
Japanese stocks soared 4.8% to their highest close since November 2007 and the yen skidded to near seven-year lows against the dollar on Friday, after the Bank of Japan surprised markets with fresh easing steps it called a pre-emptive move to stoke inflation. U.S. stocks rose on Thursday, boosted by a strong reading on quarterly economic growth and by another round of upbeat earnings reports including Visa, which accounted for nearly 140 points in the Dow industrials. The Dow closed up 221 points at 17195, the SP500 closed up 12 points at 1994.
USDJPY was up about 1.7 percent on the day after rising as high as 111.18 yen, its highest since January 2008. While the Dollar gained, the euro fell 0.3 percent to $1.2573, not far from Thursday’s low of $1.2545, which was its weakest since Oct. 6.
Spot gold dropped about 1 percent to $1,186.70 an ounce, Brent crude fell about 0.2 percent to $86.05 a barrel.
Within the equity space Supergroup, the British company behind the Superdry fashion brand cut its full-year profit guidance on Friday, saying it had become the latest retailer to see demand for its winter wares fall victim to an unusually warm autumn, the stock is currently down 10% trading at 793p.
Weak price pressure in Germany and Spain compounded the European Central Bank’s policy headache on Thursday but it is still expected to hold off on action next week, waiting to assess the impact of its new round of stimulus. Today sees the release of Final Eurozone CPI at 10.00am where the figure is expected at 0.4% vs 0.3% previous.
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