Brexit, oil in focus... IMF says Japan needs to change policy... Indian central banker to leave...
Brexit, oil in focus
The UK’s referendum on its EU membership is in focus as the new week begins with markets anticipating a vote to stay in the bloc rather than opt for ‘Brexit’.
The optimism has been fuelled by opinion polls which show a swing to ‘remain’ following the murder of a British MP last week.
Oil prices have been boosted by the easing of Brexit fears with international benchmark Brent above $50 this morning and US crude also almost 2 per cent higher.
Asian equity markets closed higher, led by Tokyo, with sentiment gaining ahead of the UK vote Thursday, however there is likely to be a volatile week ahead for markets worldwide this week.
European indexes are trending higher too; London, Paris and Frankfurt all up around 3 per cent.
Wall Street and Toronto are expected to open higher.
IMF says Japan needs to change policy
Abenomics, hailed as the saviour Japan’s economy, needs to be adjusted. That’s the view of the IMF, which says Shinzo Abe’s targets for growth, inflation and surplus in the primary budget cannot be met in the proposed timeframe. It wants Tokyo to change its policy and offer greater structural change in order to avoid a depreciation of the yen. This should include the now-postponed increase in sales tax.
Indian central banker to leave
India’s fast-growing economy may have been dealt a blow with the news that its central bank chief is quitting. The RBI’s Raghuram Rajan will step down at the end of his 3-year tenure in the role at the end of September. The former IMF economist has decided that he will return to his academic life.
The UK’s referendum on its EU membership is in focus as the new week begins with markets anticipating a vote to stay in the bloc rather than opt for ‘Brexit’.
The optimism has been fuelled by opinion polls which show a swing to ‘remain’ following the murder of a British MP last week.
Oil prices have been boosted by the easing of Brexit fears with international benchmark Brent above $50 this morning and US crude also almost 2 per cent higher.
Asian equity markets closed higher, led by Tokyo, with sentiment gaining ahead of the UK vote Thursday, however there is likely to be a volatile week ahead for markets worldwide this week.
European indexes are trending higher too; London, Paris and Frankfurt all up around 3 per cent.
Wall Street and Toronto are expected to open higher.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 17,675.16 (-0.33 per cent) | +1.00 per cent | -1.89 per cent |
| TSX Composite | 13,901.77 (+0.14 per cent) | -0.13 per cent | -5.13 per cent |
| Europe (at 5.30am ET) |
|||
| UK FTSE (previous) | 6,182.28 (+2.68 per cent) | +0.42 per cent | -7.87 per cent |
| German DAX | 9,947.61 (+3.28 per cent) | +0.32 per cent | -9.90 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,112.67 (+0.07 per cent) | +1.12 per cent | -32.87 per cent |
| Japan Nikkei | 15,965.30 (+2.34 per cent) | -4.61 per cent | -20.86 per cent |
| Other Data (at 5.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 50.12 (+1.93 per cent) |
48.86 (+1.83 per cent) |
1286.40 (-0.65 per cent) |
U$0.7804 |
| Aus. Dollar |
|||
| U$0.7454 | |||
IMF says Japan needs to change policy
Abenomics, hailed as the saviour Japan’s economy, needs to be adjusted. That’s the view of the IMF, which says Shinzo Abe’s targets for growth, inflation and surplus in the primary budget cannot be met in the proposed timeframe. It wants Tokyo to change its policy and offer greater structural change in order to avoid a depreciation of the yen. This should include the now-postponed increase in sales tax.
Indian central banker to leave
India’s fast-growing economy may have been dealt a blow with the news that its central bank chief is quitting. The RBI’s Raghuram Rajan will step down at the end of his 3-year tenure in the role at the end of September. The former IMF economist has decided that he will return to his academic life.
