Japan's Ishiba victory clears way for BoJ rate hikes
STOXX 600 up 0.4%, record high
Luxury, autos lead
Moncler surges on LVMH deal
Wall St futures lower
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
JAPAN'S ISHIBA VICTORY CLEARS WAY FOR BOJ RATE HIKES
Shigeru Ishiba's victory in the run-off to be the new leader of Japan's ruling LDP, should allow the Bank of Japan to continue normalising policy after already raising interest rates twice this year.
Ishiba defeated Sanae Takaichi, a policy dove who had previously called the BoJ's recent rate hikes "stupid".
"In contrast to Takaichi...Ishiba argued that the BoJ was on the right track in ending negative interest rates hikes earlier this year," Capital Economics head of Asia-Pacific Marcel Thieliant writes.
"The sharp strengthening of the yen following Ishiba’s victory underlines that markets view his victory as clearing the way for further rate hikes."
The yen JPY=EBS strengthened rapidly after Ishiba's victory, surging over 1% to 142.78 per dollar. It had been as low as 146.495 earlier.
"Ultimately, we feel the desire to build consensus may mean that policy outcomes don't alter too much in Japan and so some of these short-term moves may be unwarranted," says Mark Dowding, BlueBay CIO.
"Overall, we remain confident that the Japanese economy is on track, and we will see further normalisation in monetary policy in the quarters to come," Dowding adds.
(Samuel Indyk)
*****
FRIDAY'S OTHER LIVE MARKETS POSTS:
CHINA STIMULUS COULD BE 'GAME CHANGER' FOR RISK ASSETS - UBS CLICK HERE
STOXX 600 HITS RECORD HIGH CLICK HERE
EUROPEAN FUTURES STEADY CLICK HERE
BEIJING PULLS OUT THE POLICY STOPS CLICK HERE
Chinese stocks roar on stimulus-fueled optimism https://reut.rs/3Bx3wx6
European shares edge up, Wall St futures lower https://reut.rs/47JWFN5
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
