The Nikkei (cash market) had a lot to recover having just returned but recover it did. The early bounce was pulled back then the Friday afternoon recovery took over and we closed just off the days highs ( 1.2%). China’s Industrial Output was expected at 6.1% but came in a little short at 6% which did provide a bit of a pause but happily was just short lived. Retail Sales was also a little under the forecast (10.2 v’s 10.5) but that too was quickly dismissed. Having pushed through the 3k level late yesterday we eventually saw a happy run into the weekend to close 1.6% up on the day. The Hang Seng was also strong closing with the Nikkei around 1% better.
Much of the excitement did not really occur until we saw the lunchtime data in the States. Europe had responded to the very positive Asian session but really was looking for confirmation in the form of positive data. However, what we saw was far from what the equity markets were looking for and all stocks came off their days highs. We did manage a rather neutral close but were searching for positive guidance.
This post was published at Armstrong Economics on Aug 12, 2016.
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