Stocks surge on BoJ comments

Equities are in the black this morning after Ryuzo Miyao of the Bank of Japan (BoJ) confirmed it is important to keep the current stimulus package in place.

Markets have bounced back after the bank holiday break, as Mr Miyao reiterated the BoJ’s commitment to keeping interest rates ultra-low and maintaining monetary easing. Stocks had drifted lower at the end of last week, as traders decided to take profits after China revealed a contraction in its manufacturing sector. This morning we are seeing dealers buying on the dip, as the comments from the BoJ and the absence of any bad news combine to encourage investors to go long again.

In terms of corporate news, AstraZeneca announced its acquisition of Omthera Pharmaceuticals for £293m. This will expand its portfolio of cardiovascular products, and the share price is up 2.8%. Despite being downgraded by Citigroup, part-nationalised lenders Lloyds and RBS are both up 2%.

We are not expecting any major economic announcements from Europe today. At 2pm the US will announce the S&P Case-Schiller house price index, and analysts are forecasting an increase of 10.2%. If the report comes in below these expectations we might see investors taking their money off the table.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.