- Tory working majority boosts the Pound
- Japanese Tankan survey very mixed
Well that was a very exciting night wasn’t it?! All the winners and losers, runners and riders, tears of joy and wobbly bottom lips. The Pound jumped by 2% when the exit poll was released at 10pm last night and maintained those gains into the early hours.
I won’t get into the politics of it but this was definitely a Brexit election and the leave voters have had their say. In accepting the sweeping victory, Boris Johnson has committed to delivering on his promises. Whatever happens next, one level of uncertainty has now been crossed off and the financial markets like certainty. Sterling could well make further gains after this pause for reflection and perhaps a dip for profit taking.
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Japanese Tankan survey very mixed
There is other news in the world, though. Japan’s Tankan indices showed another slowdown in manufacturing but a rise in the service sector and a rise of 6.8% in capital expenditure; a very useful measure of business confidence. Oddly though, industrial production was down again; this time by 4.5%. The Yen was a tad weak but much more so against the Pound.
Today’s important economic data
There is not a lot from the EU this morning but the afternoon’s data diary is a biggie. US retail sales, export and import prices, and a few speakers from the Federal Reserve will all be in action. And hovering in the background like a tufty haired sword of Damocles, will be President Trump, tweeting about the amazing deal he is about to do with China. If that materialises and it is in fact amazing, the USD will strengthen and the global economy will pick up.
Have a great day and a super weekend. There are only 12 more advent windows to open until the man in the red suit arrives. VERY EXCITING!