by Martin Armstrong
Armstrong Economics
The strength of the JPY had a large impact on the Nikkei today’s and as it broke par then the Nikkei was hit closing down around -1.7% in all. Exporters are always hit when the currency strengthens and it is not clear which is leading which just yet. Both the Shanghai and Hang Seng were a little weaker but not when comparing to the Nikkei. The talk is the market is loosing confidence in the BOJ’s ability to handle this crisis – after 30 years now they are questioning it!
Main discussions throughout the European and US trading sessions were over the UK inflation data and the upward surprise.