Article / 09 June 2016 at 7:00 GMT

Morning Markets: Kiwi flies, yen firms, bourses wilt




  • Germany: Foreign Trade (0600 GMT) 
  • US: Initial Jobless Claims (1230 GMT)
  • US: Bloomberg Consumer Comfort Index (1345 GMT)

Markets are set to open on a downbeat note across Europe following a weak Asian session that saw Japanese equities tumble as disappointing machine orders weighed on investor sentiment. The Nikkei 225 ended 0.97% down while markets were closed in China and Hong Kong for the Dragon Boat festival. 

In Australia, share price falls for the big four banks weighed on the S&P/ASX200. In forex markets, the kiwi dollar soared to a one-year high after the Reserve Bank of New Zealand decided to keep rates on hold.

In the commodity markets crude oil remains steadily above the $50/barrel mark but both global benchmarks – WTI and Brent – are now nearing overbought territory.

Today's economic calendar is relatively light but keep an eye on the US initial jobless claims at 1230 GMT, bearing in mind that perceptions of the labour market remain tinged by last week's very poor nonfarm payrolls data.

Market signals

Asian session

  • Japan's Nikkei 225 headed sharply lower on disappointing machine orders
  • The Nikkei 225 was down by a hefty 1.14% to 16,638.36 at 0456 GMT
  • Markets were closed in China and Hong Kong today, for the Dragon Boat festival
  • China's CPI rose by just 2% over the year, compared with forecasts of 2.2%
  • China's producer prices fell 2.8%, less than the 3.2% decline estimated
  • The Bank of Korea unexpectedly cuts its policy rate from 1.5% to 1.25%
  • Korea's Kospi Composite was down 0.39% to 2,019.13 at 0501 GMT
  • India's S&P BSE Sensex was down 0.59% to 26,861.24 at 0520 GMT
  • Australia's big four banks weighed on the S&P/ASX200 today
  • The S&P/ASX200 closed down by just 0.03% at 5,368.40
  • The Reserve Bank of New Zealand surprisingly decided to leave rates on hold

Forex ahead

  • The US dollar made gains against the Korean won after the BoK rate cut
  • The US dollar was worth 1,156.3500 won at 0514 GMT
  • The Australian dollar hit a four-week high of 0.7595 before retreating slightly
  • The Aussie dollar was worth 0.7470 at 0512 GMT
  • Real kiwis can't fly, but the kiwi dollar soared after the RBNZ kept rates on hold
  • The New Zealand dollar was worth 0.7136 at 0523 GMT, its highest level for a year

From the Floor

Bargain bank? "Standard Chartered is massively mispriced," says Garnry .

Safe havens. "JPY, AUD and CAD are all benefitting from the Brexit vote," says Larsen .

Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.

In opinion


Who would have thought consumer comfort could be indexed, but industry will try anything to gauge how consumers feel, writes James Picerno.

Flightless kiwi soars
The Reserve Bank of New Zealand will have thought maintaining an easing bias was sufficient to keep a cap on the Kiwi dollar, writes Max McKegg. No such luck. 

Central banks surprise
While the RBNZ chose to keep rates on hold, the Bank of Korea unexpectedly cut them as part of a push to stimulate economic growth, writes the team at Saxo APAC Sales Trading.


The Bank of Korea has made a surprise cut to interest rates as part of moves to reinvigorate flagging GDP growth in Asia's third largest economy. Photo: iStock

Morning Markets goes out on the TradingFloor platform at 07:00 GMT, Monday to Friday. 


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