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Reinforcing existing trends

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  • The US employment situation shows spare capacity being eroded (rising participation rate) and support for household cashflow (rising on hours worked and employment levels). It reinforces the idea of recovery without changing the Fed's policy position.
  • The Bank of Japan starts its two day meeting today; investors are focused on when not if additional policy stimulus will be implemented. One year on, Abenomics has produced an increase in the monetary base of JPY74tn, and an increase in bank lending of JPY8tn.
  • In Europe Hungary's general election has seen the government re-elected with a sizeable majority (on preliminary results). The anti-EU Jobbik party increased its support to 21%.
  • German industrial production was marginally stronger than expected at 0.4% mom. Spanish industrial production data is also due, and there are several ECB speakers crowding onto the world stage today.
 
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