Asian cash responded to the US news of possible Tax Plan delays and we saw profit-taking and nerves for the first time in a while. Interesting that this has occurred on our November temporary pause expected. The Nikkei has returned -0.8% which has added to yesterdays decline but is falling from the 26 year high. Values were lower in morning trading but recovered much in afternoon trade. The Yen, uncharacteristically, has been content to play in a very narrow range which is a good indication that many players sit on the side-lines. Normally, we see the Yen strengthen in a flight to safety, but this sell-off feels to have less people concerned as they wait anxiously for lower prices in order to buy. China’s Shanghai index off-set the Hang Seng close with the two returning very little either way. The talk in China today was the move towards opening its market by increasing the amount of percentage available to foreign companies in JV’s. This is another stage in the creativity opening the Chinese financials markets and a move which many will welcome. Little by little these changes demonstrate their contention as the next global financial centre.
This post was published at Armstrong Economics on Nov 11, 2017.