14 February 2013: Asian shares rise on risk sentiment

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Asian shares rose on improving risk sentiment while Wall Street took a breather ahead of the G-20 meeting which starts in Moscow today. The Asia-Pacific MSCI-index and Australian shares were both up 0,6%. Dow Jones Industrial fell 0,26%. Investors remained cautious after the S&P index briefly hit its highest intraday level since November 2007. S&P is up 6,6% so far this year.

The Japanese Yen continues to be in focus prior to the G-20 meeting with finance and central bank officials from the 20 biggest and most influential countries in the world. Since November Yen has lost or depreciated 20% against the USD. The fall against the Euro is even higher. The leading Western powers are all using the printing press as their major tool to stimulate economic growth and obtain trading advantages. The steep fall of the yen illustrates the depth of the non-declared currency war.

At its press conference after the meeting of Bank of England (BOE) yesterday, BOE as well kept the door open for monetary easing indirectly meaning considering active use of the printing press. Taken into account that China for 10 – 15 years were under continued US pressure to appreciate their currency, power talks. An ugly currency war, might easily develop into a trading war with outright military confrontations looming in the background.

The British Pound (GDP) lost more than 100 points against the Euro and USD after the BOE meeting. USD/JPY which was down in the first part of yesterday, continues to lose ground. This morning USD/JPY is trading towards 94,65 seen on Monday. This is the lowest since 2010. Euro/USD trades at 1.3450 after factory statistics yesterday demonstrated that the euro zone might have reached bottom. Copper is up while oil prices have lost ground. Brent crude trades at USD 117, 98; down one dollar a barrel since Wednesday.

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