by Martin Armstrong
Armstrong Economics
As rumored, Japan’s PM Mr. Abe announced today that the Sales Tax increase is to be delayed for the second time. This will very likely have an impact on Ratings Agencies who will be waiting more details in regards to any change on fiscal impacts and their possible reaction. As a result the JPY moved stronger – touching an intraday high of 109.04 as the Nikkei cash closed down 1.6%. In late US futures trading the Nikkei has lost an additional 0.65%. China PMI was almost unchanged but most of the day was speculating over the possible MSCI inclusion and the effects thereof. HSI drifted in quiet trading awaiting further confirmation of the trend.