by Martin Armstrong
Armstrong Economics
Asia gapped open higher on continued strong sentiment brought forward from Abe’s election landslide victory weekend. The Nikkei saw a 1.4% rally at the open but was subject to profit taking as the day wore on. The JPY rejected the 105 handle and is seen in late US trading back towards the 104.30 level having earlier helped exporters, we may see a reversal of that trade overnight. The HSI and Shanghai were also stronger around 0.4% each and so had helped support the favorable Asian move.
In Europe, economic data releases were quite disappointing with poor CPI numbers for France (expected 0.2% but actual was 0.1% m/m) and Eurozone Ind. Prod. expected -0.8% when actual release was -1.2% m/m and with y/y missing even more (1.4% and actual 0.5%).