by Martin Armstrong
Armstrong Economics
With Japan on national holidays it was left to Shanghai and Hang Seng to show the rest of the world the way forward. With the help of the PBOC, adding ample liquidity and fixing the Yuan rate at 6.4824 (compared to 6.4628 on Friday) stocks saw a healthy 2%+ gain for the day. HSI closed marginally firmer.
In Europe it was a fairly quiet start to the holiday shortened week with core indices closing almost unchanged. The CAC was the only exception, closing down -0.7% on the day. We hope to find more clear direction tomorrow after we see the IFO (Business Climate – expected 106) and then later the ZEW (estimated 53).