Friday, 29 January: Green action across the world was prompted by surprise action by the Bank of Japan, as it took steps to set the country’s first ever negative interest rates, with the promise to cut further if deemed necessary as oil enjoyed strong trade overnight.
Japan now keeps the same company as the European Central Bank, along with central banks of Sweden, Denmark and Switzerland whom are all in negative rate territory. Japan’s Nikkei Stock Average closed 2.8% higher, as the yield on Japanese government bonds fell to historic levels. Notable gains have been seen across the major indices today as the FTSE closed 2.56% up, with the DAX 30 and CAC 40 up 1.64% & 2.19% respectively.
Brent oil sustained gains seen yesterday, before briefly breaching $36/barrel in afternoon trade, as it also continues to drive global equity markets.
Mid-cap Tullet Prebon surged 6.4% today as it reported a strong two months to Christmas, noting the oil price slide as prompting an increase in trades driving revenue to £125m for November and December, 14% higher than the prior period in 2015. The broker also re-affirmed its commitment to reduce front-office staff levels, these cuts are expected to be around 7.5% of those staff in the traditional interdealer product areas in Europe and North America. This is expected to incur a £25m charge billed as an exceptional item in the 2015 accounts, with a further £10m charge expected to be made in the first half of 2016. This consolidation follows the acquisition of ICAP’s Global Broking division late last year.
Home Retail Group shares plunged 4% as the Financial Times reported that buyout talks with J Sainsbury are stalled amid price differences. Analysts comment that the grocer is likely been shrewd, avoiding overpaying and the dreaded “winner’s curse”.