Market Gets A Boost On News From Japan

The first trading day of the week was affected by lowered activity on the stock platforms due to the bank holiday in the United States.

This morning, interesting news came from the Bank of Japan, as it reported its intention to continue soft monetary policy until the time the rate of inflation will reach 2%. The regulator plans to continue an annual increase in monetary base in the range of 60 trillion to 70 trillion yen. This decision was made unanimously and coincided with average forecasts of analysts. In addition, the Bank of Japan confirmed the volume of repayment of state bonds on the level of 50 trillion yen a year. It should also be noted that the central bank of the country also made the decision to prolong three programs of crediting for a year, which were expiring in March.

This news immediately had an effect on the yen and the Japanese stock market. The Japanese yen fell sharply in price against the dollar, and is trading this morning at 102.59. The weakening yen pushed up prices of the Japanese companies focused on export, and as a result, the Nikkei grew by 3.18%.

The situation in the commodities market remains the same as Brent is losing around 0.10% and is traded on the level of 109.07$ per barrel. WTI is slightly better, growing by 0.22% on the level of 100.35$ per barrel. Gold is stable and is losing just 0.02%, traded on a level of 1318.30$ per troy ounce. Silver remains strong at the price of 21.56$ and adds 0.65%.

Today will be saturated with publications of statistics - these being data on balance of current accounts of the Eurozone, inflation of Britain, the German index of economic expectations of ZEW, the index of activity of FED of New York, and volume of inflow of the capitals in treasury securities of the USA. All this statistical data could increase volatility in the markets and change further development in the short-term.