MORNING BRIEFING: Status quo of the BoE and the ECB, US employment report at 14:30 CET.

[RTFX-Trading]

MORNING BRIEFING: Status quo of the BoE and the ECB, US employment report at 14:30 CET.

What’s new:
USA: Dow Jones ends above 10,000 points.
Euro zone: ECB points to a strategy of crisis.
Euro zone: ECB leaves interest rates unchanged.
USA: declining in weekly jobless claims at 512'000.
USA: 9.50% jump in productivity in Q3, the highest since 6 years.
Euro zone: decline in retail sales in September.
England: Status quo on rates, acquisitions of assets increased to £ 200Mrds.
England: Industrial production up, the highest since seven months.

Today:


Rates in Asia and Indices:
EURUSD: 1.4883 - 1.4857.
USDCHF: 1.0173 - 1.0155.
EURUSD: 1.6624 - 1.6559.
EURJPY: 135.14 - 134.47.
USDJPY: 90.85 - 90.41.
Dow Jones: 10'005 +2.08%.
NASDAQ: 2'105 +2.42%.
S & P 500: 1'066 +1.92%.
Nikkei: 9'789 +0.74%.
Shanghai :3'173 +0.59%.
Gold: $1,091.
Crude oil: $80.05.
 
Comments:
The Bank of England increased its program of quantitative easing (QE) by increasing the amount of bond redemptions by £25Mrds to £200Mrds, continuing its plan to boost the British economy. The Pound Sterling is up, the market expected an increase by £50Mrds. The BoE left its rate unchanged at historically low 0.50%. The BoE also said that the repurchase program assets, primarily the "Gifts" (British government bonds) will expire within three months. The market now expects a stop to the program, which is positive for the Pound Sterling.

Regarding the Euro Zone, the European Central Bank also left its rate unchanged, the speech of its president, Jean-Claude Trichet did not provide any new items.

Today's employment report will be released at 14:30 CET. Expectations are that about 200,000 jobs were cut in October. If the figure is higher, the stock and the risk appetite (carry trade) should go up. If the figure is bad, the stock should also increase, because the US rates should continue to remain low for an extended period of time, carry trades should suffer.

Good weekend

Nicolas Longchamp
RTFX Ltd
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