Archives of “June 16, 2020” day

rss

Heads up: BOJ governor Kuroda press conference at the bottom of the hour

  
  Analysis

The usual presser by Kuroda following the BOJ policy meeting earlier

Kuroda

The main talk of the town is the Fed but yes, there was a BOJ policy meeting earlier in case you missed it. There were no major changes besides an increase to its stimulus programme to help deal with the virus fallout from ¥75 trillion to ¥110 trillion.

I wouldn’t expect Kuroda to deviate much from the script as per usual. So, expect him to reiterate their stance of continuing with powerful monetary easing and a pledge that they can do more if necessary and that they “have the tools” to do so as well.

Nikkei 225 closes higher by 4.88% at 22,582.21

  
Analysis, Global Indices

strong gains in the Nikkei amid the risk-on tilt

Nikkei 16-06

The market has pretty much shrugged off the worries from yesterday as the risk-on tilt from the turnaround since US trading overnight is continuing into the new day.

Japanese stocks are sharply higher with the Hang Seng also near 3% gains and the Shanghai Composite also posting gains of a little over 1% currently.
Elsewhere, US futures are also solidly higher with E-minis up by 1.4% at the moment.
This is helping to keep the dollar and yen a little more pressured as we look towards European trading, with AUD/USD up by 0.4% to 0.6947 currently.

Economic data coming up in the European session

  
  Analysis

The latest UK labour market report is due today

Buy Sell

Risk trades produced a stunning turnaround yesterday and the positive vibes are continuing into the new day, with the dollar and yen seen weaker again across the board.

Cheap money continues to override the rules with the Fed helping to stoke sentiment once again and we are seeing US futures trade higher today. To be fair, some key technical levels held up in the S&P 500 and that is arguably part of the story as well.
For today, there isn’t much once again on the data docket to distract from the risk mood in general. We’ll be hearing from Fed chair Powell later in the day (during US trading) but the contents of his speech was already released earlier last week here.
0600 GMT – UK April average weekly earnings
0600 GMT – UK April ILO unemployment rate, employment change
0600 GMT – UK May jobless claims change, claimant count rate
Prior release can be found here. April saw a historic print in jobless claims change and much like everywhere else, that is likely to signify the peak of the economic slump. But amid the virus outbreak and lockdown measures, expect joblessness to remain high and the labour market to suffer as a result over the next few months too.
0600 GMT – Germany May final CPI figures
The preliminary release can be found here. As these are final figures, they aren’t expected to produce much – if any – market reaction.
0600 GMT – Germany May wholesale price index
Prior release can be found here. The index measures the value of sales made by wholesalers in Germany, it provides an indicator of consumption and retail pattern.
0900 GMT – Germany June ZEW survey current situation, expectations
Prior release can be found here. Current conditions are expected to remain highly subdued but expectations are estimated to improve further, which tells a similar divergent story (also evident in market pricing) as seen last month as well.
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.

Apple is facing another antitrust complaint in Europe

  
  Analysis

Financial Times with the report on what would appear likely to be another probe into AAPL by the EU

In a nutshell:
  • Japanese media and ecommerce group Rakuten’s ereader subsidiary Kobo claimed it was anti-competitive for Apple to charge it a 30 per cent commission for e-books sold through the App Store while promoting its own product, Apple Books.

BOJ maintains its policy setting unchanged

  
  Analysis

Bank of Japan policy meeting over – statement out now

  • maintains short-term interest rate target at -0.1%
  • maintains 10-year jgb yield target around 0%
  • Japan’s economy is in increasingly severe state
  • economy likely to remain in severe state for time being due to coronavirus pandemic
  • economy likely improve as fallout from coronavirus pandemic subsides
  • will take additional monetary easing steps without hesitation if needed with close eye on impact of coronavirus pandemic
  • size of money pumped out via market operations, lending facilities to combat pandemic likely to increase from current 75 trln yen
  •  size of money pumped out via market operations, lending facilities to combat pandemic likely to increase to around 110 trln yen
  • says exports, output falling sharply
  • says pace of increase in capex is clearly slowing
  • says some weak movements seen in job, income conditions
  • says consumption falling sharply
  • says consumer inflation hovering around 0%

Full text here

A Winning Mindset is Required To Succeed

  
Analysis, Education
#  #  #
  • A losing trader can do little to transform himself into a winning trader. A losing trader is not going to want to
    transform himself. That’s the kind of thing winning traders do.
  • The winning traders have usually been winning at whatever field they are in for years.
  • It is a happy circumstance that when nature gives us true burning desires, she also gives us the means to
    satisfy them. Those who want to win and lack skill can get someone with skill to help them.
  • The “doing” part of trading is simple. You just pick up the phone and place orders. The “being” part is a bit more subtle. It’s like being an athlete. It’s commitment arid mission. To the committed, a world of support appears. All manner of unforeseen assistance materializes to support and propel the committed to meet grand destiny.
  • In your recipe for success, don’t forget commitment – and a deep belief in the inevitability of your success.

US dollar crash is virtually inevitable says Stephen Roach

  
  Analysis
#  #  #  #  #  #  #  #  #

Roach is a former Morgan Stanley Asia chairman and is now a senior fellow at Yale University.

  • “The U.S. economy has been afflicted with some significant macro imbalances for a long time, namely a very low domestic savings rate and a chronic current account deficit”
  •  “The dollar is going to fall very, very sharply.”
Roach spoke in an interview with CNBC, called for a 35% fall in the dollar.
  • “These problems are going from bad to worse as we blow out the fiscal deficit in the years ahead”
He has further reasons too, here is the link
Go to top