The British stock market can not get out of the red zone today. FTSE 100 index fall to 5,183.71 points, losing -27.58 (-0.53%). Legal & General Group Plc (LON: LGEN) reduced to 92.65 points (-1.44%).
Hang Seng index fell to 21,072.46 points, losing +49.73 (0.24%) following yesterday’s trading session. Nikkei 225 was approximately 9,362.68 points. Today’s trading will be uncompromising.
U.S. reports have helped to stimulate demand for the dollar only, because data on the housing market were not as bad as expected. In the United States was started 549 thousand construction jobs, which was 5% below the May figures, having descended to 8-month low. However, it became known that the number of building permits (an indicator pointing to further activity in the sector) in the last month showed an increase of 2,1% to 586,000. This pattern suggests that builders are still hoping that the recovery in the sector will continue.
Goldman Sachs lowered the forecast for the dollar against the euro and the yen, citing the economic slowdown in the U.S. and the delivery of a “pretty strong” data from Europe.
Dollar is not so stable, as it was the day before. Standard Chartered Plc has lowered the forecast on the U.S. dollar relative to the yen and Swiss franc, as the reason for designating the decline in yield bonds. Currency exchange rates are not stable today. According to the expectations of the bank, the dollar / yen at 3 quarter to an average of 93.5. The previous forecast implied rate at 98 yen per dollar. The new forecast for the dollar / franc mean value of 1.19 instead of 1.25 in the previous forecast.
Exchange rate yen remains stable last few days. Foreign exchange analysts Bank of Tokyo-Mitsubishi UFJ believe that the yen will likely continue to gain position against other major currencies against the backdrop of the ongoing debt crisis in Europe and the concern that the recovery of the global economy slows.
The Dow Jones Industrial Average along with the other U.S. stock indexes ended the day with another fall on the background of a weak data from the labor market yesterday. According to ADP, this June the private sector of the U.S. economy created only 13 thousand new jobsites although the analysts predicted there would be approximately 59 thousand of jobsites.
Mass stops breakthrough euro / yen below Y112.40 absorbed. There are currently testing a pair region Y112.00, which advocates support. Downward due to the dynamics of a pair of massive sales of dollar / yen, as well as testing the euro / dollar bidov of $ 1.2270/75. The supports intraday euro / yen levels perform Y111.78 and Y111.60. To understand the situation in Japan, look at the statistics:
Exchange rate euro continues to make steady downward. Major currency pairs are under palpable pressure from the U.S. dollar. Dollar exchange rate grows against the pound, yen, yuan and the euro. World currency market is waiting for positive labor market data. The publication of the latest statistics of the labor market will be held in the U.S. this afternoon. In the last week of the foreign exchange market players were reminded of the macroeconomic data.
Nikkei is weaker, than it was supposed. Stock trading in Japan on May 11 resulted in reduction of the composite index Nikkei 1,1% influenced by news of the banking sector. Investors feared that a third of the market value of Bank of Japan’s Mizuho Financial Group Inc., Will release an additional issue of shares amounting to 1 trillion yen in order to strengthen capital.