US markets consolidated last Friday’s massive gains on equity markets, with the DOW holding above 50,000, for the first time in history. The snap Japanese election was a massive success, for the ruling party, and their new leader Takaichi. She secured a supermajority in the Japanese Parliamentary system, endorsing all of her heavily Nationalistic social and economic policies. The Japanese share market surged more than 5%, during the day’s trade, in celebration. There will be a honeymoon period but some serious underlying economic challenges remain in Japan, so keep an eye on Japanese Bond yields and the Yen. The US Dollar fell lower, with the EUR heading towards 1.1900, while the GBP bounced back to 1.3660.
The weaker reserve was enough to spike the AUD, which surged back towards 0.7100, while the NZD regained 0.6050. The coming week will focus on the release of the delayed Non-Farm Payroll number and the US CPI inflation data. Geo-Political developments remain a threat.
