Asian Session: Markets shrug off Chinas 5th rate cut since September, Japan closed
Market Brief As Father Christmas approaches, the VIX volatility index falls signaling a slowdown in market activity for year end as market players reflect on a fiscally disastrous year. The pessimistic data out of U.S and EU businesses still a weight on sentiment as 2008 draws to a close. U.S and UK GDP figures are out today, final Q3 numbers expected to confirm the drastic decline in growth in the latter part of the year as the financial world’s meltdown hit its climax.
The EURUSD continued to strengthen and traded a range of 1.3935 – 1.4019, while the USDJPY barely moved (90.13 – 90.36) as Japan is closed for the Emperor’s Birthday holiday. Toyota motor announced that it expected its first-ever (in 68 years) operating loss of $1.7Bn for the year to end-March 2009. The companies’ Chairman Fuijo Cho cited a relentless sales slide and crippling rise in the Yen as key reasons. This news hit markets worldwide hard as the world’s number one automaker employs over 315’000 people worldwide.