Japan's economy dips into recession

Monday, November 17, 2014

The Nikkei index plunged more than 500 points (-2.96%) and breached below 17,000 following disappointing Japanese GDP data which weighed heavily on market sentiment. Japan’s economy shrank by 0.4% in Q3 2014 against expectations of a 0.5% growth. Following a 1.8% decline in Q2 2014, the new GDP data put Japan into a technical recession. The USD declined sharply below 116.00 against the JPY reaching a low at 115.73 in today’s session, while the markets anticipate early elections to be called. In Hong Kong, the Hang Seng index declined sharply 290 points (-1.21%), following the recent downtrend across the Asian equity markets.

Nikkei index plunges more than 500 points 

NKY Index (Nikkei 225)  Daily 17 2014-11-17 08-45-39


USDJPY Curncy (USD-JPY X-RATE)   2014-11-17 08-46-09

World leaders met at the G20 Summit in Brisbane, Australia. Barack Obama, Vladimir Putin and others join the Australian Prime Minister Tony Abbott in Brisbane for the first G20 summit where Russia came under pressure by western leaders regarding its role in the Ukrainian crisis. Canadian Prime Minister Stephen Harper told Russian President Putin that “he needed to get out of Ukraine”, while President Obama said Moscow’s “aggression” in Ukraine was a “threat to the world”, while the UK threatened more sanctions unless the situations changes.   

The European equity markets started the week in negative territory, following a bearish momentum across the Asian equity markets. The CAC, DAX, IBEX and London equity benchmark retreated between 0.2% and 0.6% in early trade this morning. The release of Eurozone’s trade balance provides further direction to the markets. In the US, the main focus will turn to the release of the NY Fed manufacturing in November as well as industrial production and capacity utilisation data in October.  

Brent front month futures came under renewed pressure this morning. WTI front month futures retreated below $75 per barrel, while Brent front month futures plunged to retest $78 per barrel. Precious metal prices posted fresh declines as Gold slid lower towards $1180/ounce and silver declined more than 0.8% in early trade towards $16.

Brent front month futures

COF5 Comdty (BRENT CRUDE FUTR  J 2014-11-17 08-48-40

Events for today:




Rightmove house prices




Trade Balance




NY Fed Manufacturing




Industrial Production




Capacity Utilization


All times UK Local Time

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