Aug 26


  • BY: Nati
  • August, 26th, 2013 7:54 +00:00

Japan’s Economic Revitalization Minister Akira Amari says that Prime Minister Shinzo Abe is likely to make a decision on the consumption tax increase before a summit of the Asia Pacific Economic Cooperation, or APEC, in October. The current rate of 5% is expected to rise to 8% in April next year, before a further increase to 10% in October 2015. Japan’s economic policy has come for some criticism from the German Central Bank. In August’s newsletter the Bundesbank said that the increase in sales tax will significantly dampen the effects of Abeenomics.

The NIKKEI closed at 13636.30 down 24.27 or minus 0.18%

European Central Bank member Jens Weidmann said yesterday that current monetary policy is set to continue, meaning interest rates should not be raised for an extended period. Weidmann speaks in Berlin today about the struggle for a stable framework for monetary policy. Belgium and Italy hold bond auctions this week, on the 26th and 27th respectively. EUR/USD was trading at 1.3370 with a high of 1.3391 and a low of 1.3364 so far.

The FTSE100 closed at 6492.10 up 45.23 or 0.70% while the DAX closed at 8430.28 up 13.29 points or 0.16%

United States figures for Durable Goods orders will be closely watched today. After last week’s Jackson Hole summit, talk of who will succeed Ben Bernanke as chair of the Federal Reserve Bank has seen three names in contention. Larry Summers, Janet Yellen and Don Kohn. CABLE was trading at 1.5564 with a high of 1.5584 and a low of 1.5560 so far. Friday saw home sales in the US drop by 13.4%, far below expectations. The drop in sales has been put down to a spike in mortgage rates.

The DOW closed at 15010.50 up 46.77 or 0.31%

Have a nice day.