27 Dec 2011: Yen poised to gain

FTSE 100 5513 Up 102bp
S&P 500 1265 Up 90bp
NIFTY 50 India 4765 Down 50bp

Major Stories

  • Yen poised to gain
    • Yen advances against every major currency, including a 4.1% climb against dollar
    • Despite the second lowest bond yields in the world, foreign ownership of Japan’s debt (Govt bonds) is the highest since 2008
    • This mainly stems from the stable, low volatility characteristics of the Yen, much preferred during this period of risk aversion
    • This also has the negative effect of eroding the value of overseas sales for Japanese companies, which may be forced to cut jobs
  • French unemployment at 12-year high
    • During November, unemployment figures rose to 2.85mn which was an increase of 1.1% on the month, and 5.2% on the year
    • This brings a major threat to Nikolas Sarkozy, French president, ahead of the elections in April-May 2012

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