Russian Rouble Falls Further, Nikkei Reaches 7-month High
September 2, 2014 7:51 am
The Russian Rouble hit its lowest ever value yesterday, trading at 37.5 to the Dollar after dropping 0.5% yesterday, with the possibility of further European sanctions in response to Vladimir Putin’s escalation of the conflict in Eastern Ukraine. The Rouble has fallen by 13% so far this year, whilst the MICEX has fluctuated wildly as the crisis moves from red-hot to lukewarm and back again. Both the US and Western European countries may also be under Russian sanctions, but European markets certainly don’t seem to be showing the effects of such sanctions today – the DAX is up by around 1%, with the CAC up by around 0.4% as speculation grows concerning the possibility of further ECB stimulus for the Euro zone. The FTSE is currently up around 0.3%, while the US markets were closed yesterday for Labour day.
The Asian session overnight saw strong gains for both the Shanghai composite and the Nikkei, with the latter reaching a 7-month high after rising by 1.24% to 15,668.60, reaping the benefits of the Yen weakening against the Dollar. Japanese PM Shinzo Abe’s economic strategy – known as ‘Abenomics’ – seems to be making little progress, with the once highly popular Prime Minister expected to reshuffle his cabinet with the hope of providing fresh impetus to the government.
In stocks news, Tesco’s share price is up slightly this morning after a difficult few days for the UK’s largest supermarket chain. Shares fell by 6% on Friday to their lowest point in eleven years after the company issued another profit warning, with some of the firm’s largest investors divesting themselves of shares. It emerged yesterday, for example, that Harris Associates, formerly one of Tesco’s ten largest stockholders, has sold two thirds of its stake – and shares fell by a further 2% yesterday – all adding up to a tough start for new Tesco boss Dave Lewis, who had his first day yesterday. Mr Lewis has joined Tesco from Unilever – the first company outsider to become CEO since the supermarket firm was started. Some have questioned Mr Lewis’s suitability for the role – though he has had a stellar career in marketing, the new CEO of one of Britain’s largest retailers has no previous direct retail experience.
The Russian Rouble hit its lowest ever value yesterday, trading at 37.5 to the Dollar after dropping 0.5% yesterday, with the possibility of further European sanctions in response to Vladimir Putin’s escalation of the conflict in Eastern Ukraine. The Rouble has fallen by 13% so far this year, whilst the MICEX has fluctuated wildly as the crisis moves from red-hot to lukewarm and back again. Both the US and Western European countries may also be under Russian sanctions, but European markets certainly don’t seem to be showing the effects of such sanctions today – the DAX is up by around 1%, with the CAC up by around 0.4% as speculation grows concerning the possibility of further ECB stimulus for the Euro zone. The FTSE is currently up around 0.3%, while the US markets were closed yesterday for Labour day.
The Asian session overnight saw strong gains for both the Shanghai composite and the Nikkei, with the latter reaching a 7-month high after rising by 1.24% to 15,668.60, reaping the benefits of the Yen weakening against the Dollar. Japanese PM Shinzo Abe’s economic strategy – known as ‘Abenomics’ – seems to be making little progress, with the once highly popular Prime Minister expected to reshuffle his cabinet with the hope of providing fresh impetus to the government.
In stocks news, Tesco’s share price is up slightly this morning after a difficult few days for the UK’s largest supermarket chain. Shares fell by 6% on Friday to their lowest point in eleven years after the company issued another profit warning, with some of the firm’s largest investors divesting themselves of shares. It emerged yesterday, for example, that Harris Associates, formerly one of Tesco’s ten largest stockholders, has sold two thirds of its stake – and shares fell by a further 2% yesterday – all adding up to a tough start for new Tesco boss Dave Lewis, who had his first day yesterday. Mr Lewis has joined Tesco from Unilever – the first company outsider to become CEO since the supermarket firm was started. Some have questioned Mr Lewis’s suitability for the role – though he has had a stellar career in marketing, the new CEO of one of Britain’s largest retailers has no previous direct retail experience.
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