European and Italian Stock markets were up in the wake of the positive closing of the Asian session, excluding Tokyo Stock Exchange that was closed for holidays. European stock markets opened the session with a positive sign that affects particularly Italy Stock Exchange.
The markets meanwhile are waiting the Fed and BoJ meetings of this week about interest rates. About Forex trading, the forthcoming appointment with the Fed meeting puts the dollar in difficulty, while gold benefits of this waiting.
Federal Reserve President, Janet Yellen, will issue its verdict on Wednesday, as the Central Bank of Japan. The latter may, according to recent rumors, extend the QE and bring the rates in further negative territory. However not all economists are confident about the real intention of the Bank of Japan to make its monetary policy even more accommodative.
European stock markets ended the trading day upward, after a day always above par. The EuroStoxx50 index ended the session up of 1.2% approximately.
Italian stock market ended positively the trading day, in line with other European exchanges. The FTSE MIB index ended the session rising by 1.3% despite it continues to serve the high exposure to the banking industry.
The ECB is surprising the markets with the high pace at which is buying corporate bonds. Last week the Central Bank of the euro bought corporate bonds of the value of 2,657 billion euro, 11% more than the previous week.
This is the highest level since early June, when Mario Draghi has enhanced its extraordinary program of Quantitative Easing including also the company’s debt. For now, the ECB has bought corporate bonds worth a total of € 25.6 billion.
About Forex trading, euro-dollar rose slightly by 0,12% to $ 1,1168. Dollar was down against the yen of 0,37%, at 101,91 JPY. Dollar also declined against the pound, with GBP-USD +0,36%, at $ 1,3049. The yen also appreciated against the euro, with EUR-JPY ratio -0,25%, to 113,82 JPY. Euro-pound was down of -0,27% to 0,85 GBP.
On the commodities market, oil prices jumped up, with those traded in New York rising 1,46%, to $ 43,66 per barrel, Brent advance of +1,14%, to $ 46,29. Gold prices are advancing of 0,61%, to $ 1.318,20 an ounce.
In the macroeconomic area, the Markit Institute will publish provisional data on the manufacturing and services industries for the world’s major economies.
Below, in detail, the main market movers of the week (in order of publication).
Tuesday, September 20. AUD: RBA minutes; USD: building permits; CAD: speech by BoC Governor Poloz.
Wednesday, September 21. JPY: trade balance, BoJ announcement on interest rates and BoJ monetary policy report and press conference; EUR: ECB meeting (no monetary policy); USD: FOMC report (new economy ratings), Fed’s announcement of interest rates and Fed’s press conference.
Thursday, September 22. JPY: Tokyo Stock Exchange closed; EUR: ECB economic bulletin; USD: requests unemployment benefits.
Friday, September 23. EUR: Services PMI Markit Eurozone and manufacturing PMI Markit Eurozone; CAD: Retail Sales and consumer price index; USD: Markit manufacturing PMI.