It’s been a broadly downbeat session
for Asian equity markets, not helped by the Bank of Japan serving to disappoint
the market as it appears to be reigning in its aspirations to boost prices. The
unprecedented stimulus measures which have been running for over a year now
have only managed to deliver inflation of a shade over 1%, leaving that target
of 2% still within reach but the nominal date for this of April 2015 looks
increasingly unachievable. With no extra stimulus – plus this vote of
confidence from the BoJ - the Yen managed to regain some ground over the
greenback, and the consequent effect that the Nikkei fell back. Chinese markets
remain closed although the week long holiday has now concluded so there will be
a degree of catch up tomorrow, whilst Hong Kong bucked the trend with the
relief rally ongoing as pro-democracy protests fizzle out.
Wall Street is eyeing a weaker start
to the day’s trade, both off the back of this lead from Asia but also given
what appears to be a deteriorating geopolitical situation. The Ebola crisis
continues to spread, whilst the fact Islamic State is now active on the
Syrian/Turkish border is also significant cause for concern. Economic data is
relatively low key today whilst there are comments due from a number of Fed
members but ahead of the open we’re calling the DOW down 57 at 16935 and the
S&P down 8 at 1957.
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