by Martin Armstrong
Armstrong Economics
The Asian markets responded quite positively to the FED’s unchanged decision yesterday with HSI and China Main trading a little over 1% higher across the board. The Exporters did not fare so well, as such, Japan closed a little lower (-0.22%) on the back of a stronger JPY (+1%). China moved the Yuan mid-point from 6.5172 to 6.4961; which really was not much of a talking point.
In Europe we saw the initial burst from cash markets reflecting the FED’s decline from four to two potential rate rises but from then most core indices drifted into the close. DAX and CAC both closed lower on the day whilst the IBEX and FTSE managed small gains. Confidence was hit after the Norwegian CB cut rates from 0.75% down to 0.5%, especially after the FED’s reflection on rates the night before!