by Martin Armstrong
Neither the Nikkei nor Hang Seng could decide on a direction today as both flip-flopped between positive and negative territory. Only Shanghai was to remain lower for the whole day closing well above the days lows but still 0.5% weaker. Yesterday we heard that the PBOC added (through 14 day reverse repo’s) cash into the system, the first in around six months. Interesting that they did 14 day repo’s as there is also talk they may extend to 28 day and even longer. This just relaxes any pressure there maybe on the short-term market by extending along the tenor. Will also be viewed as negative for the currency, so watch for JPY as it may have an impassive tie.