by Martin Armstrong
Having rejected the 17k level in the Nikkei we witnessed a powerful opening which never looked back. Complementing the surge was a weak JPY which very much looked as though it could have a 105 handle at one stage. Given the renewed currency weakness it was exporters that led the way with Panasonic, Mitsui Mining and Mazda Motors leading the march with 3% rises across the board. The Nikkei closed around 0.75% better on the day but has given a little of that back in late trading as the Yen flirts with the 104 handle. Shanghai and Hang Seng were pretty much a mixed bag but it was the offshore Yuan trading at 6.7893 that captured a lot of the talk. However, these levels were not to last and in late trading we are seeing the price at a more sensible 6.7750.
More losses for the GBP having heard Mark Carney’s address in front of the House of Lords Economic Affairs Committee. The market was hopeful it would hear clues surrounding monetary policy and so sold cable off once it was clear the MPC balances inflation projections against currency declines.