Saturday, 30 July 2016 19:35

Australian stocks head north

On Friday, Australian stocks edged up after the close today, as revenues in gold, healthcare as well as consumer discretionary sectors brought stocks higher.   

At the close in Australia, the S&P/ASX 200 earned 0.07%, hitting a fresh 6-months peak.

The best performers of the trading session on the S&P/ASX 200 include Resmed Inc with its 7.55% rise, trading at 9.260. Meanwhile, Bega Cheese Ltd gained 6.90%, being worth 6.200, while Austal Ltd soared 5.94%, trading at 1.160.

As for the worst performers of the trading session, we should mention Beach Energy Ltd, that sank  5.13%, trading at 0.555, Aconex Ltd with its 4.94% dip, trading at 7.985 as well as Fortescue Metals Group Ltd, which sagged 4.11%, being worth 4.430.

Rising shares outnumbered decreasing ones on the Australia Stock Exchange by 586 to 501, while 315 ended intact.

Stocks in Resmed Inc edged up to 52-week peaks, soaring 7.55% at 9.260.

The S&P/ASX 200 VIX, gauging the implied volatility of S&P/ASX 200 options, slumped 0.39%, hitting 14.179 a fresh 3-months minimum. 

FTSE 100 slumps, but Barclays earns on Brexit reassurance

British shares flipped in and out of losses, with traders sifting through corporate earning posts as they obtained word of a tumble in British consumer confidence.  

The FTSE 100 earned 0.2%, being worth 6,733.16, thus setting the blue-chip index on track for a 3.5% monthly revenue, marking a second straight monthly soar.

For the week, the benchmark braced for a 0.1% soar, which would extend its weekly winning streak into a sixth week.

As for movers, stocks of Barclays PLC managed to top the FTSE 100 by soaring 4.2%. Meanwhile, the banking heavyweight reassured market participants regarding its course of business in the wake of Great Britain’s Brexit referendum, including an initiative to close non-core assets as soon as possible.

Financial analysts are assured that it’s the right plan for Barclays, and they don’t see any reasons to adjust this stuff in light of the vote by Great Britain the previous month to leave the EU.


Published in Stock Markets

Japanese companies have cut their forecasts for inflation in the country in the next 5 years, clouded the prospect of this country for achieving the inflation target of 2% in the coming fiscal year as the Governor of Bank of Japan (BoJ ) Haruhiko Kuroda set.

Bloomberg has quoted a survey report released on 4th of July due BoJ said Japanese companies forecast inflation rate of 1.1% during the next 5 years, the lowest level since the first survey was performed in 2014.

During this survey, Japanese companies also forecast prices will rise 1.1% in next 3 years, and an increase of 0.7% within 1 year.

This forecast of Japanese companies showed opposition to BOJ's forecast that Japan will achieve the inflation target of 2% in March, 2018.

Currently, inflation in Japan has reduced the level at a time when Mr. Kuroda started the huge stimulus programs in 2013. The recent economic data showed hardly any signs of prosperity before the next meeting of BoJ in 28-29th of July.

Increasing 2% inflation as target in strategy to revive growth named Abenomics of Prime Minister Shinzo Abe. Low inflation posed risk for Japanese economy to fall back into a spiral of deflation and continued sluggish growth.

"There is no sign of inflation," said Junichi Makino, chief economist of SMBC Nikko Securities, said "Mr. Kuroda will continue under pressure to loosen policy further."

Yen rose from the beginning of the year makes inflation target 2% of Japan distant. Not only having the ability to erode the profits of Japanese exporters, the currency discount also pressured deflation through imported price discount.

In the context of low inflation and sluggish profits, wage growth is likely to stay low.

Yen's rise has been pushed higher since British voters voted to leave European Union (EU). Brexit made the global financial markets panic, push demand for safe assets increasing, in which gold is the most preferred investment, US Treasuries and Japanese Yen.

According to the latest figures, consumer prices in Japan fell 0.4% in May, the lowest inflation rate since January 4th 2013 as Governor Kuroda announced program to stimulate growth with huge scale.

Many major banks such as Barclays and JPMorgan Chase forecasted that Bank of Japan will have to increase the size of the stimulus program in a meeting held in end of July.

Published in World economy

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