Asian stocks pared gains for a second consecutive day, on the hopes of further monetary easing from the US and Euro zone. Asian currencies were also seen appreciating against the greenback. The SGX Nifty is trading higher by 60 points, tracking other peers.
On the Economic front, the BOE will announce its Interest rates which are expected to remain unchanged at 0.50%. Apart from that, we have the PMI service numbers from the UK, which are expected to show a slight downtick and could keep the pound under pressure. From the US, we have the Initial Jobless Claims and Continuing Claims that would be closely watched, given the last weeks ADP numbers disappointment. We could expect slight negative data from the labor market today and this could pressurize the dollar in evening session.
The rise in risk appetite over the last few days, along with hopes for monetary easing from the US and Europe are expected to have a positive effect on the most currency
U.S. stocks rallied on Wednesday, with the Dow and S&P 500 logging their best gains of the year, as investors grew hopeful that more stimulus for the global economy is around the corner. Dow Jones jumped 287 points, or 2.4%, its best one-day jump since Dec. 20. The day’s gains pushed the blue-chip index back into positive territory for 2012. S&P 500 rose 30 points, or 2.3%, its best daily performance since Dec. 20. Nasdaq added 67 points, or 2.4%.
Investors were encouraged after Atlanta Fed president Dennis Lockhart, who is a member of the Federal Reserve’s policy-setting committee, said that continuing Operation Twist is now “an option on the table.” Stimulus hopes also grew for Europe. While the ECB left interest rates
The European markets finished solidly in positive territory on Wednesday after the European Central Bank resisted calls for a rate cut. Britain’s FTSE 100 rose 2.2%, DAX in Germany gained 2.2% and France’s CAC 40 jumped 2.1%.
All the Asian indices are trading the green with Nikkei up the most 1.3%. Kospi is trading higher by 2.8% while Strait Times and Taiwan are up by 0.3% and 0.5% each. Hang Seng and Shanghai are up 1.4% and 0.3% respectively.
The Euro rose against the US Dollar on Wednesday after the European Central Bank left its benchmark-lending rate unchanged. Traders also sold dollars on rising speculation that the Federal Reserve might launch another round of bond-buying to help stimulate the U.S. economy.
Among the metals, Zinc gained 2.2% while Copper rose by 1.1%. Nickel and Aluminum ended higher by 0.7% and 0.3% respectively. Oil for July delivery rose 73 cents to settle at $85.02 a barrel. Gold futures for June delivery climbed $17.30 to settle at $1,634.20 an ounce