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Daily Review 26.08.2016

Global markets remain sluggish as investors play waiting game on Yellen’s speech

Global markets were subdued on Thursday as investors refused to make big bets ahead of Fed Chair Janet Yellen speech that could end speculations on interest rate hike.

The waiting game played by the investors has kept the international markets in the negative all week.

The US dollar, inched lower on the previous session as it closed $94.765 against its major counterparts.

Meanwhile, US stocks indices were thrown in the red zone as Dow Jones industrial average lost 33.07 points, or 0.18%, at 18 448.41 while the S&P 500 dropped 2.97 points, or 0.14%, at 2 172.47. NASDAQ posted its two-day losing streak, giving up 5.49 points, or 0.11%, at 5 212.20.

Asia and Europe followed the downward trend as the FTSE closed 0.28% lower while Japanese and Chinese stocks also suffered a modest drop.

Japan’s consumer price index logs to biggest annual fall in three years

Japan’s core consumer prices dropped for the fifth-straight month as it shed in July, marking its biggest annual drop in more than three years, the Statistics Bureau reported.

The CPI, which measures price movement of basket of goods excluding fresh foods, slid 0.5% last month, adding more pressure to the central bank to expand an already massive stimulus program.

Core consumer prices in Tokyo alone slipped 0.4%, more than a median market forecast of a 0.3% drop.

In effect, Japanese stocks suffered modest drop as Nikkei shed 0.3% to close at 16 555.95 while the broader Topix tumbled 0.2% to finish 1 304.27, with its 1.349 billion shares changing hands.

Meanwhile, the Japanese yen remained unmoved on CPI report as it closed 100.20 against US dollar.

Bank of Japan’s Governor Haruhiko Kuroda blamed the declines in prices on weakness in global energy prices since 2014.

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