Thanks to a strengthening of the yen (which was quoted at 98,8 against the dollar in the early afternoon in Tokyo and pushes the Nikkei down by more than 2%) the Asian markets are still down, but the week ended with a gain for the regional index MSCI Asia Pacific, by 0,4%. However, the day is equally positive for Abenomics: the Japanese Istat communicated the inflation data for June (and for July only for the Tokyo metropolitan area) and the dynamics of consumer prices - even if it takes place on the edge of the ' zero point' – it is the highest since 2008. Even if it is true that inflation is mainly driven by energy – excluding energy and food prices have still decreased – it is also true that the Bank of Japan surveys for as far as inflationary expectations are concerned, they report that 80% of households expect rising prices in the next 12 months: and Abenomics aimed precisely at stimulating spending – here and now – through higher expectations of price increases.
The euro strengthened – or, if you like, the dollar weakened – to 1,327. Oil remains around 105.5 (WTI) and 107.5 (Brent) while gold strengthens its positions in the $1330-1350/ounce range.
