In Asia there are still gains: the MSCI Asia Pacific regional index one hour after the Tokyo close progresses by 0,4% and in the month of July it already shows an increase of 2,6%. Wall Street closed in the red yesterday evening, but futures in the Asian day signal a slight recovery. The dollar strengthens against both the euro (1,341) and the yen (102,1). Household confidence in America has increased, according to the Conference Board, to the highest level since October 2007. Today the Fed will announce a further reduction in securities purchases. In Japan, industrial production fell more than expected in June (-3,3% on May), underlining how the economy, after the VAT increase in April, is struggling to recover. However, the Nikkei is making slight progress, comforted by a declining yen. Profits in Japan are holding up well, but companies are not investing enough. Abenomics seems to lack the third pillar, that of structural reforms.
In South Korea, however, industrial production increased and the Kospi index is growing by 0,9%.
Gold starts to fall again and is close to 1300 $/ounce; oil also falls, to 101,1 $/b (WTI).
Attachments: The Bloomberg article
