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Abe tells us what he wants (what he really, really wants)

  • Japanese PM Abe was pushing forward with the illusion of Abenomics, and declared he wanted 3% per capita growth for a decade. He may want it. He is unlikely to get it. Markets do not seem to find the planned policies particularly credible.
  • China saw only a very small increase in the HSBC services sentiment index, which worried markets in Asia a bit. Australia saw weaker GDP in the first quarter - imports fell which helped the trade contribution, but this also reflects a domestic economy exhibiting recession-like characteristics.
  • US Fed President Fisher was sounding predictably hawkish overnight, talking about scaling back Fed bond buying (though not selling bonds). The ADP payrolls report on the labour market, and the Beige Book of economic anecdote may help form opinions about the timing of any tightening.
  • Service sector sentiment is due in Europe, the UK and the US (markets expect a slower contraction, expansion, and expansion respectively). The UK BRC shop price index fell, with the BRC suggesting that companies were getting competitive to lure in newly confident consumers.

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