armstrongeconomics.com / by Martin Armstrong / Jul 7, 2017
Following on from the weak US session, Asia tended to drift in sympathy. Ahead of the US NFP’s it was always going to be light volume but with G20 also just stated numbers were even lighter. The Shanghai has managed a positive close (+0.17%), but not so for the Hang Seng which closed down -0.5%. After trading hours China released Foreign Reserves which were mildly better than expected at $3.057 trillion for June a rise of just $3bn. In Japan the BOJ was rumoured to be in action supporting 5 – 10yr JGB’s as we have seen bond markets fall globally this week. This programme failed to support todays Nikkei action which closed down -0.3% and also watched as the JPY traded close to 114 through US Dollar strength. This move was accelerated after the NFP report but we’ll discuss that further down. Australia is feeling the pinch as commodities, geopolitics and slowing trade unnerves trade flow which impacts confidence. The ASX closed almost 1% lower and saw the A$ trade back in the 0.75 handle.