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Japanese Stocks Plunged During Asian Session

Wednesday, September 9, 2015 9:56 AM GMT


- Oil, Copper Rise in Asia Risk Rally; Gold in Range with Fed Blackout. (Source: DailyFX)

- BoJ Board Member Shirai: Important for BoJ to maintain accommodative environment, Mid to long term inflation expectations are around 1%. What's more, Japanese Prime Minister Shinzo Abe pledged to follow through with a corporate-tax cut, a day after government data underscored businesses’ reluctance to ramp up domestic investment. (Source: BloombergView)

- US Equities Close: DJIA 16492.55 (+2.42%); S&P500 1969.38 (+2.51%); NASDAQ 4811.93 (+2.73%).

- RBA's Lowe: 2Q GDP suggests growth is at similar rate to past few years. If investment increases, we can grow closer to 3 percent.  China residential property market more positive lately, China response to stock crash raises questions on reforms. (Source: FXStreet)

- The dollar gained against the safe-haven yen on Wednesday, boosted by a surge in European and U.S. stocks amid a global recovery in risk appetite that also drove rallies in commodity currencies such as the Australian and Canadian dollars. The dollar was up 0.2 percent at 120.09 yen, extending gains from an overnight low of 118.885, with a spike in U.S. debt yields on reduced risk aversion helping the greenback. The Australian dollar edged up to $0.7036, adding to the 1.4 percent surge overnight which whisked it away from a 6-1/2-year low of $0.6892 struck on Monday. (Source: CNBC)

- Japanese stocks soared, with the Nikkei 225 Stock Average heading for its steepest advance since the aftermath of the 2011 nuclear meltdown, amid speculation a sell-off that drove valuations to a 11-month low was excessive. The Nikkei 225 jumped 5.7 percent to 18,415.20 at the trading break in Tokyo, headed for the biggest gain since March 2011 and reversing losses on Tuesday that wiped out the gauge’s 2015 advance. (Source: BloombergView)

- For much of 2015, John Williams, president of the Federal Reserve Bank of San Francisco, has projected a rosy U.S. economic outlook, seeing solid output growth, steady unemployment declines and an approaching need to raise short-term interest rates. “All of the data that we have had up until now has been, I think, encouraging. It has been about as good, or better, than I was expecting, in terms of the U.S. economy,” Williams said. “But there are some pretty significant — and I would say have now grown larger — headwinds that have developed.” Williams points to the risk of moving too soon. but also stated clearly that If the risks don’t look so threatening, then he could see “interest-rate increases some time later this year, or an interest-rate increase.” (Source: WSJ)

- Seasonally adjusted GDP rose by 0.4% in both the euro area (EA19) and the EU28 during the second quarter of 2015, compared with the previous quarter, according to a second estimate published by Eurostat, the statistical office of the European Union.  (Source: Europa)

- The kiwi may is one of the most technically-friendly pairs out there at the moment. If the doubters needed to see one chart right now to be convinced that technical analysis (if used correctly) does really work, then they should look no further than the daily chart of the NZD/USD. Virtually... all crucial levels plainly show how a key support level, once broken, turns into resistance. The most obvious examples of these are at 0.6410, 0.6500 and 0.7200. But have the bears milked it enough? Is time for the bulls to take control? Although it is way too early to say that this may be the case, there are some early warning signs that suggest a short-squeeze rally could be on the cards. Take for example the RSI. The momentum indicator has now created a triple bullish divergence with price i.e. it has created three higher lows while price has made lower lows...Meanwhile the RBNZ could dash the bulls’ hopes by delivering a significantly bearish policy statement on Wednesday evening UK time or Thursday morning New Zealand time. The central bank is expected to cut rates to 2.75% from the current 3.00 per cent. (Source: FXStreet)

- Major upcoming events: BOC Rate Statement, RBNZ Rate Statement, US JOLTS Job Openings, GBP Industrial, Manufacturing Production.

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