Cheapens copper for a week as the minimum WTI traded at $ 43 in Asia. Oil fell below its 100-day moving average down for the first time since April and short positions are gaining more momentum for a new attempt to reach the level of $ 40.
However, he recovered to 6740p in the opening FTSE regardless of softening oil, prices of raw materials and weak corporate results. The cheaper pound seems to be the major bullish driver this morning. Basic materials won last 1% with the pound set another slide towards the mark of 1.30 against the dollar. Investors see the increased value of the depreciation of the pound, as the British companies become progressively more profitable, and could be interesting targets of M & A for foreign investors.
selloff BP (-0.82%) remained reasonable, after the company announced a 44% decline in 2Q earnings. Investors could take a breather in BP’s decision to maintain its dividend unchanged at 10c / share.
Expect to see a massive fiscal stimulus simply vaporized after the Japanese Finance Minister Aso said he would let the Bank of Japan (BoJ) to decide on what to do next in terms of further stimulus. Abe-maniacs readjusted their expectations sharply downward since the probability of a fiscal stimulus worth $ 30 billion quickly vanished overnight.
The US dollar sell-off aggressively against the Japanese yen; USDJPY collapsed below the critical decline of 38.2% in July increased 104.60, sending the pair to the bearish consolidation area before the BOJ meeting on Thursday.
The possibility of a decent disappointment is priced in, as the Bank of Japan could – and certainly not be able to meet market expectations ultra-moderate. The consensus is 5 basis points cut in the policy rate and no change in asset purchases, despite speculation that the Bank of Japan may buy an additional 10 to 20 billion yen worth of assets annually introduces a pessimistic bias in the YEN-complex in the last two day.
Across the Pacific, we see a softer US dollar ahead of the two-day meeting of the Federal Reserve (Fed). We expect the Federal Reserve to maintain the status quo and to join the field of wait and see in the middle of the post-Brexit uncertainty. The FOMC probably will emphasize the importance of future economic data and deliver a statement accompanying pessimistic to provide support to markets. The S & P 500 and the Dow could navigate a new wave of cheap money, if the Fed leaves the bowl on the table.