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Anzac Day leaves Asian markets quiet

Published: Thursday 25 April 2019

  • Anzac Day leaves Asian markets quiet
  • Extended Japanese Holiday approaches
  • ECB bulletin awaited

It is ANZAC day. We hope all our Australasian readers have a good day off as we all remember the sacrifice of those heroic young men in 1915 and the men and women who have served ever since. As Aussies and Kiwis were not at their desks, the Asian trading session was a quiet one, and even the Bank of Japan did nothing; leaving their base rate on hold at minus 0.1 percent. That negative deposit reate does seem to be encouraging investor activity elsewhere though.  

However, investors are either preparing for volatility or just getting out of Japanese Yen investments ahead of the longest Japanese market shutdown in decades. Japanese financial markets will be shut from April 29th to May 6th to celebrate the enthronement of Crown Prince Naruhito.  A thinly traded Asian market could yield volatility next week but that is also likely in the next two days ahead of the closure. Yen traders should beware and/or be prepared with automated market orders to capture highs and protect against the risk of adverse movements. . 

UK government borrowing in the year to 31st March 2019 was the lowest in 17 years as spending controls and higher tax income combined to narrow the gap. With such a high employment level, there was always going to be an improvement. Toda’s UK data is limited to t e CBI distributive trades survey (retail industry to you and I). A small improvement is expected but I guess that is what good weather does for the high streets and malls. Sterling is unlikely to rally on the news, what with the dread B word still in the air. 

Eurozone data is pretty limited but will include the European Central Bank’s economic bulletin. Recent data has been worrying, so more talk of monetary stimulus may be the order of the day. A weaker Euro should ensue if cheap money or more printed money is on the cards. 

This afternoon brings US durable goods data and the weekly jobless claims numbers. The USD is benefitting from safe haven investor flows but could always use an upturn in orders for US goods. That is what we are expecting, so it would be kind of churlish to bet against a stronger USD before the end of the day. 

And I am not sure how I missed this in February but I guess it had to happen eventually. Police in Detroit, acting undercover as drug buyers, raided a suspected drug den only to find the people they tried to arrest were undercover agents acting as drug dealers. Had anyone been sampling the merchandise we wonder. 

Daily Joke 

Husband: "Why do you do that?”

Wife: “Do what?”

Husband, “Whenever we argue, there comes a point when you just stop and leave the room and I don’t see you for 20 minutes and then everything seems to be OK again. What is it that you do to manage your anger?"

Wife: "I clean the toilet."

Husband: "How on earth does that help?"

Wife: "I use your toothbrush!"
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