Source - http://www.reuters.com/
By - Richard Hubbard
Category - Port Of Miami Hotels
Posted By - Inn and Suites In West Miami
Japan's main Nikkei share index .N225 earlier led the equity market falls, dropping 3.8 percent to a two-month low, while the dollar fell 0.5 percent against the Japanese currency to 99.50 yen.
The MSCI world equity index .MIWD00000PUS was down 0.4 percent, close to its lowest level in over a month, and the FTSE Eurofirst 300 index .FTEU3 of top European shares fell 0.15 percent. U.S. futures pointed to a weaker start on Wall Street.
In the third tranche of measures aimed at boosting growth in Japan, Prime Minister Shinzo Abe pledged to boost incomes and attract foreign businesses, but did not mention a proposal to encourage Japan's public funds to seek higher returns by investing more in riskier assets like equities.
"Investor expectations were for more specific growth policies and the disappointment has only exacerbated a trend for a correction in Japan's stock market," Lee Hardman, currency analyst for Bank of Tokyo Mitsubishi UFJ said.
Since the Nikkei index rose to a 5-1/2 year high on May 23, up more than 50 percent this year, doubts about the effectiveness of Abe's economic reforms and the Bank of Japan's stimulus efforts have led to a steady retracement of the gains.
FOCUS ON CENTRAL BANKS
Comments late on Tuesday from two senior Federal Reserve officials highlighted divisions over the future of the central bank's stimulus program
Dallas Fed President Richard Fisher and Kansas City Fed President Esther George - both long-term critics of the bond-buying scheme - reiterated their concerns over the risks of waiting too long to cut it back. FED
"The markets are hanging on every word of the central bankers in Europe and the U.S.," said Berkeley Futures associate director Richard Griffiths.
The focus on Fed policy meant a euro zone business activity survey for May was largely ignored, as it did little to change the outlook for the region's long-running recession, now virtually certain to extend into the second quarter. ECONEZ
"Policymakers and politicians will nevertheless seek solace in the fact that the rate of decline has now eased for two consecutive months, and that Germany is stabilizing," said Chris Williamson, chief economist at survey compiler Markit.
GDP data confirmed the 17-nation region contracted by 0.2 percent quarter-on-quarter in the January-March period.
Brighter news from Britain's big service companies boosted sterling, which climbed to high of $1.5372 and within sight of its recent three-week peak of $1.5376 struck on Monday.
British and German government bond futures fell on the UK data, which extended a run of positive readings, though Bunds later stabilized to be little changed as the weakness in equity markets lent support.
JOBS DATA EYED
Commodity markets were generally firmer, with investors keeping an eye on the dollar, which is expected to gain if jobs data including Friday's key nonfarm payrolls report support talk of an end to the Fed stimulus.
Growth-attuned copper was at a two-week high while a surprise fall in U.S. crude supplies added extra support to oil prices which climbed back above £103 a barrel for the first time in a week. <O/R>
"Overall, oil markets will remain largely choppy as investors try and gauge if stimulus measures from the U.S. Fed will continue or not," said Ben Le Brun, an analyst at OptionsXpress in Sydney.
By - Richard Hubbard
Category - Port Of Miami Hotels
Posted By - Inn and Suites In West Miami
 |
| Port Of Miami Hotels |
With markets dominated by
speculation on when the Federal Reserve will taper its bond-buying
program, there was little reaction to data showing euro zone business
activity eased slightly in May, and confirming the region's economy
contracted in the first quarter.
Japan's main Nikkei share index .N225 earlier led the equity market falls, dropping 3.8 percent to a two-month low, while the dollar fell 0.5 percent against the Japanese currency to 99.50 yen.
The MSCI world equity index .MIWD00000PUS was down 0.4 percent, close to its lowest level in over a month, and the FTSE Eurofirst 300 index .FTEU3 of top European shares fell 0.15 percent. U.S. futures pointed to a weaker start on Wall Street.
In the third tranche of measures aimed at boosting growth in Japan, Prime Minister Shinzo Abe pledged to boost incomes and attract foreign businesses, but did not mention a proposal to encourage Japan's public funds to seek higher returns by investing more in riskier assets like equities.
"Investor expectations were for more specific growth policies and the disappointment has only exacerbated a trend for a correction in Japan's stock market," Lee Hardman, currency analyst for Bank of Tokyo Mitsubishi UFJ said.
Since the Nikkei index rose to a 5-1/2 year high on May 23, up more than 50 percent this year, doubts about the effectiveness of Abe's economic reforms and the Bank of Japan's stimulus efforts have led to a steady retracement of the gains.
FOCUS ON CENTRAL BANKS
Comments late on Tuesday from two senior Federal Reserve officials highlighted divisions over the future of the central bank's stimulus program
Dallas Fed President Richard Fisher and Kansas City Fed President Esther George - both long-term critics of the bond-buying scheme - reiterated their concerns over the risks of waiting too long to cut it back. FED
"The markets are hanging on every word of the central bankers in Europe and the U.S.," said Berkeley Futures associate director Richard Griffiths.
The focus on Fed policy meant a euro zone business activity survey for May was largely ignored, as it did little to change the outlook for the region's long-running recession, now virtually certain to extend into the second quarter. ECONEZ
"Policymakers and politicians will nevertheless seek solace in the fact that the rate of decline has now eased for two consecutive months, and that Germany is stabilizing," said Chris Williamson, chief economist at survey compiler Markit.
GDP data confirmed the 17-nation region contracted by 0.2 percent quarter-on-quarter in the January-March period.
Brighter news from Britain's big service companies boosted sterling, which climbed to high of $1.5372 and within sight of its recent three-week peak of $1.5376 struck on Monday.
British and German government bond futures fell on the UK data, which extended a run of positive readings, though Bunds later stabilized to be little changed as the weakness in equity markets lent support.
JOBS DATA EYED
Commodity markets were generally firmer, with investors keeping an eye on the dollar, which is expected to gain if jobs data including Friday's key nonfarm payrolls report support talk of an end to the Fed stimulus.
Growth-attuned copper was at a two-week high while a surprise fall in U.S. crude supplies added extra support to oil prices which climbed back above £103 a barrel for the first time in a week. <O/R>
"Overall, oil markets will remain largely choppy as investors try and gauge if stimulus measures from the U.S. Fed will continue or not," said Ben Le Brun, an analyst at OptionsXpress in Sydney.
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