A variety of nations seems to be bouncing back from economic down time at the moment. Nations
such as Australia, Japan, and the United States. Aussies had a very busy week or two due to how
busy their gold mints have been due to saturation levels the precious metals have gone through.
Tokyo shares surged to their best level in nearly five years as Japanese markets responded after a
two day holiday in which the yen fell, the European central bank cut rates and US jobs data beat set
Australian dollar, which is down 0.7% to a two month low of $1.0177 after the reserve Bank of
Australia trimmed interest rates by 25 basis points to a record low of 2.75% and left open the
possibility of further cuts.
Combination of positive thinking over global economy and network of large banks , huge asset
purchase programmes by the federal reserve and bank of Japan- sees the FTSE all world equity index
up 0.5% to 2445.5, its highest level since June 2008.
The gold situation – Growth is not too cold but not so hot that it precludes central bank assistance-
also helped wall street S&P 500 close Monday’s session at a record high of 1,617.5, with predictions
that benchmark will add another 2 points when the opening bell rings later on Tuesday.
Germany have remained Europe’s strong horse by contributing towards the local economy recently.
Germany’s index is up 0.9% to a record high, bolstered by stronger than expected industrial orders in
March, data that has also lifted the euro, up 0.4% to $1.3123.
To conclude Tokyo is the standout performer. With the Nikkei 225 bouncing 3.6% to trade higher
than 14,000 for the first time since before the collapse of Lehman Brother at the height of the
financial crisis ion autumn 2008. Generally Japanese economy is looking up, Nomura reported that
52% of Japanese companies that it covers had beaten their own operating profit forecasts for the full
fiscal year to March by 5% or more, while 14% had missed by 5%.
The Sliding yen which has fallen against all 16 leading currencies so far in May looks to define the
profits over the medium term. The break even dollar yen rate for exporting companies across all
industries was y83.9 in the last fiscal year, according to Japans cabinet office.
In commodities lingering concerns about global growth leave the sector struggling to add to last
week’s sharp rally. Copper, which has surged 6.7% to $3.31 a pound on Fridays following the US jobs
data is barely changed. Gold is losing $5 to $1,464 an ounce.
- Refreshed Summer (theinvesmentman.wordpress.com)
- Dollar Rises Above 100 Yen For 1st Time In 4 Years (washington.cbslocal.com)
- Why the West supports the yen’s devaluation and Japanese over-indebtedness (europeansting.com)
- Japan: Nothing Fails Like Success (zerohedge.com)
- Nothing Fails like Success (businessinsider.com)
- Dollar tops 102 yen mark (upi.com)
- Nissan chief welcomes yen fall for luxury brand (miamiherald.com)
- Dollar rises above 100 yen for 1st time in 4 years (miamiherald.com)
- Whither Japan Stocks: The Next Stage of the Rally Will Not be So Easy (forbes.com)