Impact of Christmas on the Financial Markets

The Shanghai Composite of China rallied by 2.5 percent to reach 2214, which is the highest it reached after July this year. This surge is attributed to the property shares, even as the poll conducted by Reuter mentioned that real estate rates are going to be higher than this year in 2013, as the demand for properties will rise to a great extent.

The stock for Nikkei also surged by 1.4 percent to 10080, thereby going over the 10000 mark. The newly elected prime minister of Japan, Shinzo Abe went ahead to urge the Bank of Japan to set a high inflation target.

The yen looked week, as it dropped to a mark of 84.965, which is the lowest it hit in past twenty months against the dollar. This great decline in yen strengthened the exporters and Canon rallied by 2.1 percent.Christmas trading

All stock markets in the West, along with those in Korea, Australia and Hong Kong remained closed due to Christmas. The US markets are supposed to open on Wednesday; however the markets in Europe will not open until Thursday.

In view of Christmas, the Pound and Canadian dollar saw a surge of 0.1 percent to 1.6134 and 0.9923, in that order. Both the Swiss Franc and Euro also surged by a fraction. After recording the lowest mark since April 2011, the yen bounced back to 84.83, a rise of 5 pips.


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