Markets Consolidate
Currencies Direct February 28th 2013 - < 1 minute read
Yesterday the markets showed signs
of consolidation following strong US economic data on Tuesday and
evidence that the market has not lost confidence with Italy-
yet. Italy went to the well yesterday and their debt auction
was relatively positive and encouraging given the political
backdrop. It seems more likely that we will see a
Bersani-Berlusconi government but this is far from a done deal and
the uncertainty should keep the market on its toes.
In the US, Federal Reserve chairman
Ben Bernanke was speaking yesterday and he indicated that he is no
hurry to exit the QE programme which also helped ease market
concerns. US equities closed over 1% higher and the momentum
continued into Asia with the Nikkei up more than 2%. Asian
markets were also boosted by confirmation that Haruhiko Kuroda is
to become the next Bank Of Japan governor and this will undoubtedly
lead to a more aggressive Bank Of Japan as already indicated by
Prime Minister Shinzo Abe.
We have unemployment data from
Germany this morning and a bout of US data this afternoon with
initial jobless claims and Chicago PMI. Italy will also
continue to come under the spotlight and the market will be
watching the peripheral bond markets closely.
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Currencies Direct