May 3, 2016
Australia’s central bank cut its key rate by 25bp to a record low of 1.75%, to counter the emergence of disinflation. Meanwhile, European and U.S. stock markets held their heads above the waterline despite a negative lead from Tokyo and weaker-than-anticipated U.S. economic data yesterday. Tokyo exchange remains closed until Friday due to holidays.
May 2, 2016
Stocks in Tokyo fell as the yen soared nearly +5% almost reaching an 18-month high. This after a holiday and the Bank of Japan refrained from adding monetary stimulus last week. At the same time, Chinese manufacturing purchasing manager indices (PMI) dropped slightly to 50.1 in April from 50.2 a month earlier pointing to weaker conditions. However, stock bourses in China and Hong Kong remained closed at the start of the week due to a holiday.
Apr 29, 2016
The initial suspicions and indicators date well back into the previous year. The first formal charges were brought against the established bull market at the beginning of 2016. The markets passed a first instance judgement during the month of January already. But as usual this hasty judgement will be contested within a reasonable deadline from a chart-technical point of view...
Apr 29, 2016
Investors expressed disappointment in the aftermath of the Federal Reserve and Bank of Japan monetary policy announcements. On the one hand markets had hoped for more clarity of the Fed’s future path to raise interest rates, and on the other hand, expected the Japanese central bank to expand its monetary stimulus to support the ailing economy.
Apr 20, 2016
The enthusiasm for Abenomics - Prime Minister Shinzo Abe’s economic revival policy that began in 2013 - has long sub-sided. Foreign investors have been exiting Japanese equities over the past year, and international risk aversion has additionally strengthened the yen. But Japan’s longer-term economic data actually continue to improve steadily.