Posted on: 16 November 2015, by: Chris Hewitt, category: Market Review
Markets are still reeling from the tragic events in Paris at the end of last week, though not as much as some were expecting – France 40 and DAX both fell over 100 points at the open of trading today on further fears of escalation or follow-up attacks. France responded by launching a series of bombing sorties on IS targets in Raqqa, Syria. The US dollar and Gold rose as safe havens found bidders amongst the general pessimism.
Japan released its preliminary GDP data today which showed that – despite a bold effort so far to stoke inflation and growth with QE – Japan is back in recession. GDP fell -0.2% quarter on quarter, which was even lower than the -0.1% that analysts were expecting. With the Bank of Japan meeting on Thursday this week, there will be at least some speculation that the BoJ considers further easing measures to fight the weak data.
Data out of the US will also be closely watched – the CPI measures on Tuesday (15:30 server time) and the FOMC Minutes on Wednesday (21:00 server time) are two pieces of the puzzle that are left to fall in to place before the Fed decides on raising rates in December. The minutes could give some more insight in to the hawkish statement that the FOMC released last month, perhaps expanding on how much employment needs to recover before a rate rise is appropriate.