MORNING BRIEFING: The Japanese Yen is up following the Democratic Party’s victory in the Japanese elections and Shanghai stock market is down by more

[RTFX-Trading]

MORNING BRIEFING: The Japanese Yen is up following the Democratic Party’s victory in the Japanese elections and Shanghai stock market is down by more than 5%.

What’s new:
Japan: Democratic Party wins the elections.
Japan: Industrial production rises by 1.90% in July.
China: Shanghai stock market falls by more than 5%.
United States: Household spending is up, sentiment is down.
Euro zone: Economic sentiment improved further.
Switzerland: KOF indicator rebounds to -0.05 in August.
United Kingdom: GDP contraction less than expected in Q2 2009.

Today:



Overnight Rates and Indices:
EURUSD: 1.4314 – 1.4256.
USDCHF: 1.0633 – 1.0586.
GBPUSD: 1.6301 – 1.6206.
EURJPY: 133.86 – 132.19.
USDJPY: 93.56 - 92.54.
DowJones: 9'544 -0.38%.
NASDAQ: 2’028 +0.05%.
S&P 500: 1’028 -0.20%.
Nikkei: 10'523 -0.10%.
Shanghai: 2’706 -5.37%.
Gold: $954.85.
Crude Oil: $72.34.
 
Comments:

   
The Chinese stock market is at a three month low, as investors are worried about the credit crunch in China. The risk aversion is back, causing a rise in the US Dollar.

After 54 years of at the helm, the Japanese people have relegated the Liberal Democratic Party (LDP) to the opposition yesterday and as the Democratic Party of Japan (DPJ) rose to power. This should lead to more independence from the United States, which could impact the foreign exchange market. Mainly we could see a drop in USDJPY. Statements in regards are expected in the coming days / weeks.

The interest rate decision from the European Central Bank and the US employment report are the two main events scheduled for this week.

Good week.

Emman Xuereb
RTFX Ltd
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