I love the ’90s

In what could be straight out of a VH1 episode of ‘I love the ’90s,’ Japan’s govt is proposing another stimulus plan of $150b which is $50b above what was discussed earlier in the week and that combined with an unexpected gain in machinery orders is helping to lift Japanese stocks to a 2 month high.

Taiwan and South Korea are rallying to 5 month highs and other Asian markets are also higher. Copper is also at a 5 month high.

While decoupling was a failed thesis in 2008 as no one was immune to the economic crisis in the US and parts of Europe, lower debt levels in other parts of the world and stabilization in commodity prices will create decoupling on the upside with the US economy unfortunately likely to lag as deleveraging here takes years to unwind.

As expected, the BoE made no change in policy. Canada’s jobs data was weaker than expected. The results of the bank ‘Stress Test’ isn’t so secret anymore after today’s NY Times article.

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