29 April, 2016
Shares in the U.S. plummeted following the decline of the stocks in the Asian market as the Bank of Japan left the interest rate unchanged.
The market was surprised with the decision of the Bank of Japan to keep the negative interest rate unchanged at their recent policy meeting.
Stefan Worrall, director of Japan equity sales at Credit Suisse, said that the market had clearly worked itself into a frenzy of expectations, demanding that the BOJ take action, and in retrospect that looks like a misguided view that failed to recognize the dilemma that recent economic dynamics have presented for the BOJ.
Aside from the BOJ, the Federal Reserve also concluded on their two-day policy meeting to hold the interest rate as it focused on the global economic condition.
At the trading session earlier, the Nasdaq 100 futures slumped 0.45 percent or 20 points while the Dow futures lost 139 points, or 0.77 percent. The Standard & Poor’s 500 dipped 16 points or 0.74 percent.
In addition to, the U.S. GDP for the first quarter inched up for only 0.5 percent while the consumer spending advanced 1.9 percent, still low as compared to the growth during the same quarter in 2015. The weekly jobless claims stood at 257,000.
Meanwhile, Deutsche Bank advanced 3.4 percent, beating the market expectation on their recent earnings report. Facebook succeeded the analysts expectation as well with a jump of 8 percent at the close of the market.
Some of the companies which posted quarterly earnings report recently included Amazon, Ford Motor Company, Mastercard Incorporated, Baidu, LinkedIn and United Parcel Service.
In Asia, the Nikkei 225 dropped 3.61 percent, while the Taiwan Weighted hit a fresh one-month low with a slump of 1.04 percent.
The declining stocks on the Tokyo Stock Exchange were 1721 and the rising ones were down to 235 while 43 remained unchanged. On the other hand, there were 185 advancing stocks on the Taiwan Stock Exchange and the falling stocks were 563 while the remaining 104 were stable in the end.
Elsewhere, Brent oil for July delivery declined 0.49 percent or 0.23 to trade at $46.70 per barrel and the crude oil for delivery in June fell 0.46 percent or 0.21 to change hands at $45.12 per barrel. Gold futures gained 0.50 percent or 6.25 to $1256.65 per troy ounce.
Market players kept their guards up as they await the US labor data report, a strong reading of which could urge the Federal Reserve to increase interest rates this month – a decision that would be bearish for non-interest bearing gold...
The US economic growth has been sluggish in the first quarter, although not as strongly as initially expected, amid an increase in spending on home architecture and a constant increase in inventory investment by business...
Oil prices increased more than 1 percent on Monday after Goldman Sachs stated that the market has ended for nearly two years of oversupply subsequent to a global oil disruptions and a market deficit...
The Australian and New Zealand dollars rallied against the greenback on Wednesday, but gains were anticipated to stay capped by lower prices of crude oil...
World stock markets rallied on Tuesday, fueled by a strong corporate earnings in Europe, including improvements on Greek debt talks and Japan’s new pledge in preparation to a weaker currency...
Gold prices ticked higher as the greenback slid to 16-month lows during the session earlier. On the Comex division of the New York Mercantile Exchange, gold delivery for June rallied at $1,303.85 per troy ounce, advancing $6.55 or 0.51 percent...
Analysts forecast that Germany DAX would hit 0.06 percent higher when the market opens, while France’s CAC 40 was anticipated to remain steady. Meanwhile, UK markets are closed due to a public holiday.
Wall Street futures dropped on Friday after the Dow issued its first decline of more than 1% in two months, while investors are closely watching on data...
International Energy Agency claimed that the oil prices would be stable again in 2017 as the non-OPEC oil producers were expected to limit their production this year...