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.