The KUIK Morning Market Report for Friday, January 29:
Markets are up.
Index Direction Change Units Time
Dow Up 185 points 16,257 6:59 AM
S&P500 Up 1.1% percent 1,914
Nasdaq Composite Up 1.1% percent 4,554
30 Year Treasury Down (4) Basis Points 2.75 Annual Yield
The Bank of Japan announced today that it will adopt a negative interest rate policy for the first time, as a sputtering economy, stubbornly low inflation and turbulent global financial markets threaten to undermine Prime Minister Shinzo Abe’s economic-revival plan. The central bank said it cut the deposit rate it pays on cash held at the BOJ by commercial banks in excess of legally required reserves, to minus 0.1% from the previous plus 0.1%. The goal is to push down borrowing costs and stimulate inflation.
Oil prices rose to a three-week high after Russia’s energy minister said that his country and OPEC, would discuss 5% output cuts at a meeting in February. A senior OPEC official, however, refuted the claim and analysts remain skeptical of the chances of such an agreement. “While we view this outcome as unlikely, a 5% production cut by just Saudi Arabia and Russia would be sufficient to bring the market close to balance,” says Jason Gammel, oil analyst at Jefferies. “A balanced market…would set the stage for oil price recovery.”
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
http://www.marketwatch.com/story/bank-of-japan-adopts-unprecedented-negative-interest-rate-2016-01-28
http://www.marketwatch.com/story/crude-prices-rise-against-unlikely-scenario-of-coordinated-output-cuts-2016-01-29
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