FOREX FLYER: February 2016

Thursday 25 February 2016

British Pound remarkably low against major currencies 25-Feb-2016

Since the beginning of this month, GBP has sharply gone against major currencies such as USD, JPY, AUD or NZD though GBP peaked out in last Autumn of 2015.

Compared with the level at the end of 2015, GBPJPY got the sharpest decline more than 12.0% down, GBPUSD is following down at 6.0%, and even against AUD and NZD, GBP has gone down 5.0% and 3.6% respectively.

Due to the rate cut of AUD and NZD for a last few years, GBP and other currencies have been relatively stringer against AUD and NZD whose interest rates are more stable now than before.
However, even though their rates had been cut, the policy rate in

Australia is still 2.0% and it is 2.5% in New Zealand while the rate in England is only 0.50%. Also looking at the credit rating of sovereign debts of them, S&P rated AAA (stable) for Australia, AA (stable) for New Zealand and AAA (negative) for United Kingdom. Simply thinking, Australia has better credit rating and more interest rate, which of Australian or English debt do you want to invest?

We cannot miss out that global stock markets have been downward and volatile since the beginning of the year. The market shows

some symptoms of financial crisis, particularly strength of JPY and weakness of GBP. Remember Lehman crisis 2008, JPY had been the strongest currency in the market.
What happened in crisis probably happens now again, it is still a question from the view of investment because Japan has S&P rating only A+ (stable) and negative interest rate at -0.1%. Do you want to invest?

2015 was geopolitically unstable year, and 2016 will be economically and (geo)politically unstable due to the volatile market, US president election, Brexit, Spanish goverment, ...

Keep yourself to follow the global economy more efficiently, why not use Newsensus. Available on Google Play.

Tuesday 9 February 2016

Global stock market plummeted in massive scale for a last years 9-Feb-2015

Long Time No See.

As most of you already know, the global stock market have plummeted since beginning of 2016, or now we could say it might have started later 2015.

Despite Japanese negative rate introduced by Bank Of Japan, Japanese stock market has gone down, where Nikkei 225 down 5.40% from last closing.

Italian banks have been vulnerable relatively due to concerns over the bad loan.

Financial Times >> Italian finance official expects big interest in banks’ bad loans
That pile of bad loans made the country’s financial institutions especially vulnerable in the recent market sell-off, causing alarm among investors and policymakers. Stocks in Italian banks tumbled last week even after the deal was announced.
The bad loans will not be sold individually under the new plan but will be packaged through securitisation — a market that has been lacklustre in Europe over recent years — and sold to private investors.

Massive quantitative easing and negative interest rate have been carried out by several economic zones. After all, they will have limited choices to stabilize the financial market, and actually loosened financial policy for a last few years could bring massive bounce back into the market once the market is going out of the control.

To check international news, Newsensus is available on Google Play.

Here is the list of global stock indexes.

[Asia & Pacific]

(Australia) S&P/ASX 200
(China) SSE Composite Index

(Hong Kong) Hang Seng Index
(India) S&P BSE SENSEX

(Japan) Nikkei 225 index

(Singapore) STI Index

[Europe / Middle East]

(France) CAC 40

(Germany) DAX

(Italy) FTSE MIB

(Norway) OSLOStock Exchange All Index

(Russia) RTSI Index

(Spain) IBEX 35