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Markets update: The Japanese stock market defied a regional decline and strengthened on Friday after the Bank of Japan announced plans to taper its bond-buying program, causing the yen to depreciate and raising concerns about potential future rate hikes, while global markets remain jittery due to the US Fed's revised stance and oil prices dipped slightly but are still expected to gain for the week.
Economic Calendar
Global Markets Roundup: 14 June 2024
Tokyo: Despite a broader regional decline in the MSCI Asia Pacific index by 0.16% and a weakening yen, Japanese stocks showed resilience on Friday, with the Nikkei NI225 gaining 0.7%. This positive movement was driven by the Bank of Japan (BOJ) announcing plans to gradually reduce its bond-buying program, leading to the Japanese currency USDJPY falling to a 1.5-month low of 157.98 per dollar. The BOJ surprised markets by maintaining its current pace of purchasing government bonds at 6 trillion yen ($38 billion) per month and delaying an immediate reduction, hinting at a tapering strategy to be revealed in July with the goal of normalizing long-term interest rates. The yen's depreciation remains a concern, especially after authorities intervened multiple times to prevent it from reaching a 34-year low in April. The BOJ may contemplate raising rates later in the year as they collect more economic data.
Global Market Jitters Persist
Meanwhile, investors remain cautious about the global economic outlook. The U.S. Federal Reserve's revised stance, indicating fewer rate cuts this year despite softer inflation data, has strengthened the dollar. The euro also faces pressure due to European political uncertainties The U.S. dollar index DXY currently sits near a one-month high, reflecting market sentiment.
Oil Prices Dip Slightly, But Weekly Gains Expected
Oil prices CL1! edged lower on Friday but are on track for their first weekly gain in four weeks. The market grapples with the conflicting influences of potentially higher U.S. interest rates and strong projected demand for crude oil.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team