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FIVE at FIVE AU: A quiet afternoon on the markets; the yen continues to look good for tourists

Published 14/06/2024, 02:59 pm
© Reuters FIVE at FIVE AU: A quiet afternoon on the markets; the yen continues to look good for tourists
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The Australian stock market was lower today, dropping 30.70 points or 0.40% to 7,719.00 and crossing below its 50-day moving average.

At around 3pm today the worst performing stocks were Deterra Royalties Ltd and Orora Ltd, down 7.85% and 5.37% respectively.

The index has lost 1.79% for the last five days, but sits 2.42% below its 52-week high.

There was a mixed outlook across the sectors, with Consumer Discretionary up 0.30% and Health Care up 0.17% at the green end of proceedings, while other sectors trailed by up to 0.97% in the case of Industrials and 0.84% in the case of Information Technology.

Bank of Japan stays its hand

In global news, the Bank of Japan has kept policy rates unchanged, which had ramifications for that nation’s currency value, which is currently at parity with the Australian dollar, sitting at 104.64 Yen to the dollar.

USD/JPY has ripped to a six-week high of 157.98 after the BoJ kept its policy rates unchanged at 0.0-0.1% and pushed back a decision to taper its bond-buying program until its next policy meeting at the end of July,” said IG analyst Tony Sycamore.

“Yields on 10-year JGBs have fallen from 0.96% to 0.91%, and the Nikkei has gained 1%. The BoJ’s exit plans will be further detailed at a press conference later this afternoon.

“The BoJ’s decision to postpone the taper of its bond-buying program today continues its slow but deliberate march towards policy normalisation.

“The real question is, will the currency market will allow the BoJ the luxury to exit at the pace they would like?

“Or will today's inaction see the market gun for the April 160.20 high in USD/JPY, supported by this week's hawkish FOMC meeting and the current risk-seeking low-volatility regime?”

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