Yen Dips, Nikkie Picks Up
London: 19 December 2023 (TraderMade): The Bank of Japan (BoJ) kept its ultra-loose monetary policy unchanged, disappointing some who expected a shift towards tighter measures. The yen weakened slightly against the dollar, while the Nikkei stock index (JPN225) jumped 2.57% to 33618.5 (At about 08:35 AM GMT- compared to yesterday's close).
The BoJ's decision was in line with most forecasts. Despite the BoJ's stance, the yen's decline is expected to be temporary due to ongoing expectations of a policy change in the new year.
Key Points
- Broader Asian and European markets remained subdued after a strong run on US rate cut expectations.
- Oil prices edged higher amid concerns about shipping safety in the Red Sea.
- US Treasuries and gold were flat, while Bitcoin rebounded slightly.
- US Treasury yields remained stable after comments from Federal Reserve officials downplaying the possibility of swift rate cuts next year.
- Japanese steel giant Nippon Steel suffered a significant drop after announcing a large acquisition deal.
Overall: The BoJ's decision and global economic uncertainty kept markets in a holding pattern, with some sectors like oil and technology showing modest gains. Investors remain focused on central bank policies and economic data releases for further direction.
