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Monday, July 29, 2013

Nikkei Drops 1000 Points In 3 Days

Something is rotten in the state of Abenomics. The last three days have seen the biggest surge in JPY in over six weeks (now well under 98 and at its strongest again the USD in over a month) and thebiggest drop in the Nikkei 225 in almost two months. 

It seems with Fed Taper talk off the table (in investors' minds), hotter than expected inflation in Japan (what they wanted but brings the 'endgame' closer for expectations of moar QQE), and a miss for retail sales in Japan tonight (no matter what they do, consumption disappoints - unsurprising given the demographic hurdle, even with free money oozing out of every crack) that global investors (who have once again piled lemming-like back into the long-Nikkei-short-JPY trades) have found better places (for now) to put their 'easily-earned' money. Or is thisthe Japanese markets' cry for help ahead of Kuroda's speech this evening?


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