Markets await US jobs data

Markets await US jobs data while BOJ kept its interest rate unchanged

5 July 2023

  • The Japanese Yen continues to decline as the Bank of Japan continues its expansionary monetary policy

  • Markets await US jobs data within hours

  • European stocks sharply lower

Risk aversion

Panic spread across the startup world as concerns about the financial health of Silicon Valley Bank SVB, a major lender to startups. The bank's chief executive has urged calm amid concerns about the bank's financial condition.

The turmoil followed a surprise announcement from SVB that it had sold $2.25 billion worth of shares after a significant loss in its portfolio, which included US Treasurys and mortgage-backed securities. SVB stock fell 60% Thursday and its bonds hit a record low.

BOJ keeps low rates

The BoJ on Friday kept overnight interest rates on hold at minus 0.1 per cent. It maintained its bond-buying policy to control yields, allowing 10-year bond yields to fluctuate by 0.5 percentage points on either side of zero, after surprising investors by expanding the band in December. Japanese yen continue its fell as USDJPY traded now near 137.00.

European stocks sharply lower

European stock markets traded sharply lower Friday as markets await U.S. jobs report and weakness in the banking sector overshadowed better-than-expected U.K. growth data.