The Bank of Japan will likely stick to its assessment that the flat domestic economy is showing signs of a turnaround, when policy board members convene for a two-day meeting starting Tuesday.

Monetary policy is expected to be left unchanged as the central bank monitors the impact of its asset-buying program, which was increased by 5 trillion yen in April to 70 trillion yen.

Calmer markets in Asia after yesterday's short-cover in EUR, Cross /JPY given hopes that France and Germany will come out with solutions to keep Greece in Eurozone and pro-growth comments from China Premier Wen.

US indices bounced Monday driven by strong gains in the technology hardware & equipment, materials and auto sectors. The S&P 500 (1315.99)remains below its 20d moving average (1362.1 - downward slope) and 50d

moving average (1380.6 - downward slope). The RSI14 crossed above its oversold threshold at 30 (34.5).

European markets are expected to start on a positive note helped by Wall Street’s rebound last night.

 

Posted by Mike Moloney | Account Executive