The closing of the MSCI Asia Pacific regional index is off to its highest level in nine months as both the Japanese and Chinese markets make clear gains. The negotiations on the fiscal cliff see the gap between Obama and the Republicans approaching, on the crucial point of the amount of income beyond which tax increases are triggered: from the limit granted by Boehner (the Republican Speaker of the House) of one million dollars and that initially indicated by Obama (250) it has been increased, by concession of the President, to 400.
The logic of this type of (slightly Levantine) negotiation pushes for an agreement, even if we can't exclude stumbling blocks which, however, shouldn't last long. The other reason for Asian optimism lies in the new administration in Tokyo: next year the mandate of the governor of the Bank of Japan and of two other members of the directorate expires, and the new appointments, due to the government, can only favor the revolutionary monetary policy (setting an inflation target of 2-3%) desired by the new prime minister.
The euro remains high, just below 1,32 and gold, like oil, has recovered with other raw materials, in view of a strengthening of the US recovery and beyond.
