Market Talk — May 18, 2016

by Martin Armstrong
Armstrong Economics

Japan’s GDP showing today finally provided signs of life when the expected number of 0.1% was put to shame with a 0.4% print. However, it was only enough to rescue the Nikkei from the selling but did help to provide the days highs. By close of business the index had drifted back only to close the day almost unchanged. Neither the Hang Seng nor the Shanghai benefited from Japans positive sentiment and both closed a little over 1% lower. The JPY lost ground upon the announcement and has continued its weakness into late US trading, currently with a 110 handle. The Nikkei futures has bounced slightly on the back of the currency sell-off but is only just 0.25% higher than the cash close. Both China and HSI remain weak and have extended their losses an additional 0.35%.

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