MORNING BRIEFING: The Bank of Japan will inject some 10,000 billion Yen in the Japanese economy

[RTFX-Trading]

MORNING BRIEFING: The Bank of Japan will inject some 10,000 billion Yen in the Japanese economy

What’s new:
Japan: BoJ provides liquidity, keeps interest rates unchanged.
Japan: Tokyo will intervene on the foreign exchange market to stem the rising Yen.
Japan: Bank of Japan will inject some 10,000 billion Yen in the Japanese economy.
Germany: 0.50% increase in retail sales in October.
Switzerland: GDP declined by 1.30% in the 3rd quarter on an annualized basis.
Australia: interest rate rises by 0.25% to 3.75%.
US: Chicago PMI index at its highest since 15 months.
Canada: Growth is back in the 3rd quarter.
Eurozone: Inflation back in November.

Today:


Rates in Asia and Indices:
EURUSD: 1.5057 - 1.4971.
USDCHF: 1.0075 - 1.0013.
EURUSD: 1.6488 - 1.6392.
EURJPY: 131.28 - 129.33.
USDJPY: 87.54 - 86.16.
Dow Jones: 10'344 +0.34%.
NASDAQ: 2'144 +0.29%.
S & P 500: 1'095 +0.38%.
Nikkei: 9'572 +2.43%.
Shanghai: 3'225 +0.95%.
Gold: $1'178.
Crude oil: $77.22.

Comments:
Wall Street ended its last session in November higher, relieved by the impression that Dubai's financial difficulties would have little impact on major US banks. So no major impact is accepted by the US on the foreign exchange market and therefore risk appetite returned, the Japanese Yen and US Dollar are under pressure, while the Australian Dollar and New Zealand Dollar are supported.

The Australian central bank again raised its interest rates by 25 basis points to 3.75%, this is the third consecutive month of rising interest rates, a record. The market expects Australian interest rates to reach 4.50% by the summer of 2010.
The Euro, the Dollar and the Pound Sterling appreciate against the Yen; the Bank of Japan will inject some 10,000 billion Yen (77 billion Euros) into the Japanese economy whose recovery is threatened by deflation and the rising Yen. The BoJ announced this morning it would lend money at preferential interest rate of 0.1% to banks, in exchange for assets such as treasury bills or corporate bonds. This unconventional measure is valid for a period of three months, said the BoJ, which has also kept its key rate unchanged at 0.1%.

Investors await a series of major economic statistics this week, including the PMI manufacturing index in the Euro Zone today and the monthly employment report from the US on Friday.

Have a good day.

Nicolas Longchamp
RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 23 31 00 00
Fax: +356 21 41 24 58
Web: www.rtfx.com

This message and any attachments (the "message") are intended solely for the addressees and are confidential. If you receive this message in error, please delete it and immediately notify the sender. Any use not in accordance with its purpose, any dissemination or disclosure, either whole or partial, is prohibited except with formal approval. The internet cannot guarantee the integrity of this message. RTFX Ltd (and its subsidiaries) shall (will) not therefore be liable for the message if modified. Do not print this message unless it is necessary, consider the environment. RTFX Ltd holds a Category 3 license issued by the Malta Financial Services Authority.