Hurricane Sandy remains the focus as the BOJ expand asset purchases
City Index October 30, 2012 1:00 PM
<p>Hurricane Sandy remains very much in the markets spotlight as at least twelve storm-related fatalities were reported with large areas of Manhattan without electricity and […]</p>
Hurricane Sandy remains very much in the markets spotlight as at least twelve storm-related fatalities were reported with large areas of Manhattan without electricity and underwater. There has been reports of an explosion at a power plant on the east side of Manhattan whilst the US Nuclear Regulatory Commission has also declared an alert at the country’s ageing nuclear power plant in New Jersey due to rising water levels. The costs to repair the infrastructure is estimated to be in excess for $20 billion but despite this equity markets and the risk trade are trading constructively with some markets participants seemingly having the view that the damage could have been a lot more severe.
The BOJ left rates unchanged but increased the size of it’s asset buying and lending programme by 11 trillion JPY to 91 trillion. This was slightly more than the market had expected at JPY 10 trillion although there had been rumours in the media that Japanese politicians had been asking the BOJ for JPY 20 trillion. The BoJ reiterated its policy message that it will continue to pursue an easing policy until inflation reaches its 1% goal.
In the US the Case-Shiller house price index is expected today whilst the October consumer confidence print (originally scheduled for today) has been delayed until Thursday with rumours circulating that this Friday’s US employment report could be delayed until after the US Presidential election.
Supports 1.2875-1.2835-1.2805 | Resistance 1.2980-1.3020-1.3080
Supports 79.00-78.80-78.45 | Resistance 79.80-80.00-80.15
Supports 1.6025-1.6000-1.5975 | Resistance 1.6100-1.6145-1.6185
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.