US market recap September 12, 2016
DJIA 18,325.07 +239.62 points (+1.32%)
S&P 500 2,159.04 +31.23 points (+1.47%)
Nasdaq 5,211.89 +85.98 points (+1.68%)
Starting the week strongly after a sharp drop on Friday caused by Fed’s Rosengren optimism about the rate hike. Dow Jones Industrial Averages emerge as the winner as Fed’s Brainard breathe dovish sentiment toward the economy. Fed’s Brainard strongly oppose another rate hike this year as inflation.
CNBC cited, Goldman Sach slashes odds of Fed interest rate hike to 25 percent after Brainard comment.
All sector cheered in green with healthcare is the top winner of the day. U.S dollar capped after Fed’s conference, it fell and find support at 94.94.
BOJ uncertainties linger as Fed diverge
Uncertainties brewed by the Fed also impact BO. Initially optimistic about easing program in July, BOJ grew reluctant to execute its ETF purchase and monetary easing. Earlier, speculators bet BOJ will press negative rates deeper and prepare more stimulus. The step will bolster U.S dollar and keep USD/JPY rates above 100, but under the current situation, the market has hard time to guess what BOJ will do.
Asian Indices & News
Nikkei Finish higher following triple digit gain by DJIA, up 56.12 points (+0.34%) the indices closed at 16,729.04. Shanghai Composite closed with a little gain of 1.53 points (+0.05%) to 3,023.51. Meanwhile Australia ASX 200 closed at 5,207 down 11.8 points (-0.23%).
Duterte, Philippine’s President, once again steal the spotlight demanding U.S special forces retreat from Southern Island of Mindanao.
North Korea disclosed fifth nuclear test target, and it is directed to the United States. On Tuesday, U.S also sent bombers flying above South Korean as a warning to North Korean after last week Nuclear test.
Earnings report, Merger-Acquisition, Shares report
IKEA over performing the market after reported stronger sales for fiscal 2016, said 12 months sales end Aug.31 were 34.2B Euros ($38.4B) climbed 7.1% YoY. It planned to open the first store in India and Serbia shortly.
Uber face headwind in the UK as the major Sadiq Khan vowed to protect local cab’s industry. He said the government would incorporate taxi booking information to the London transportation mobile apps by summer 2017. Opening special routes for black taxi also which reserved for buses only.