Despite some of the asset classes heading into the lower volume 'dog-day's of summer,' there is a plethora of economic data points soon to be revealed to keep even the most bored of investors busy. Whether it's interesting and volatile enough for the remaining few trading is another matter. Have faith; it will not be too long before investors again will be jousting with the full force of a German and Aussie election and the FOMC tapering talk next month. This week will bring with it readings on retailing, factory activity, housing and inflation to name but a few and that is only stateside data.
It seems that Euro equities have taken Asia's lead, and are tracking higher first thing. During the overnight session a weaker yen had been supporting Asian stocks, while hopes of Chinese stability boosted other regional bourses. The Nikkei has rallied +2.6% overnight, as the yen quietly reversed some of its past five-day's strength. A variety of factors continue to make the yen softer. Japan's currency has been pressurized by reports that Prime Minister Abe has called for a study on lowering effective corporate tax rates. Not helping any was yesterday's weaker than forecasted Q2 growth data - slower growth could require further government stimulus, which would obviously weigh on the yen yet again.
IMOH, Clement I.
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