Another record on Wall Street and markets in Asia consolidate at yesterday's levels. The Nikkei is roughly stable at its recent high levels, comforted by a further depreciation of the yen, which has passed 117 (when only recently analysts expected 115 by the end of the year). Meanwhile, in hindsight, the first analyzes of the continuing weakness of the Japanese economy are emerging.
The VAT hike from 5 to 8% – three points – had far more recessionary effects than did the UK VAT hike from 17,5 to 20% (2,5 points) in 2011: in the first case there was an increase in revenue of 60%, in the second case of 14%. In Tokyo, the Government confirmed what was anticipated yesterday: upcoming elections and postponement, for at least 18 months, of the VAT increase to 10%.
The regional indices – MSCI Asia Pacific and MSCI Asia Apec 50 – recorded -0,2% and -0,1% respectively at the end of the day. The euro is slightly stronger, at 1,252, and, against the yen, reaches its highest level in six years (146,9). WTI oil drops again (74,1 $/b – Brent at 78,5) and gold tries again to climb to the 1200 level: at the end of the Asian day, the yellow metal registers 1192 $/ounce.
Equity futures on New York and London are slightly higher.
