Japan's GDP spreads optimism across equities and commodities

Monday, June 09, 2014

Japan’s GDP revised up by 6.7% in Q1 2014, beating expectations of a modest 5.6% rise. Consumer confidence rose to 39.3 in May compared to 37.0 in April, suggesting improving market conditions in the Japanese economy.  Asian equity markets posted solid gains following the robust economic indicators. The Nikkei rose by 0.31% above the 15,100 area, while  the Hang Seng gained 0.6%. The JPY consolidated around $102.4.

Japan's GDP

JGDPAGDP Index (Japan Real GDP A 2014-06-09 08-39-19

JPY Spot

JPY Curncy (Japanese Yen Spot )   2014-06-09 08-39-48

 

European equity markets consolidated in early trade this morning. The release of the Eurozone’s sentiment index could provide markets with some momentum. The euro rebounded and traded back to the 1.365 area.

Gold held above $1,250 per ounce after US employment was fairly in line with analysts’ expectations, while a rally in equity markets curbed the metal's appeal as an investment hedge. Silver was trading around $19 in early trade this morning.

XAU- Gold Spot

XAU Curncy (Gold Spot   $_Oz )  2014-06-09 08-42-21

Energy: Brent front month futures held above $108 per barrel as optimistic Chinese exports and solid US non-farm payroll data improved market sentiment and raised hopes of increasing oil demand from the world's top two consumers. However, Brent futures posted the second consecutive weekly loss, finishing the session on Friday at $108.60 per barrel. The WTI front month contract has also been under pressure, ending the session on Friday at $102.6 per barrel.

 

Events for today:

 

0600

JP

May

Consumer Confidence

0600

JP

Q1

GDP

0930

EZ

Jun

Sentiment Index

1500

US

May

Employment Trends

 

All times UK Local Time

Topics: GDP, Energy, Brent, EUR, JPY, US, Japan
More from: Myrto Sokou