As of today, Japan has a new Prime Minister - Yoshihide Suga. Suga was the most predictable choice and the one investors were betting on, so his selection as the next PM was received positively by the financial markets.
Suga has stated that he intends to continue with the “Abenomics” established by and bearing the name of his predecessor, Shinzo Abe, so no dramatic changes are expected in Japan.
The Japanese yen appreciated on this news and the USD/JPY sank to 105.05. The yen, together with the other East Asian currencies (the Korean won, Chinese yuan, and Taiwanese dollar) is strengthening thanks to the improvement in the Chinese economy.
Today the Federal Reserve is ending its two-day policy meeting. Investors are keenly awaiting Jerome Powell’s press conference after the meeting’s conclusion in order to learn what the central bank’s plans for the future are.
Though no adjustment to the bank’s policy is expected today, the Federal Reserve will unveil its economic projections for the next couple of years, which will be key.
The stock indices in the United States continue their rally. Even tech stocks are doing fine, though Facebook is facing new legal challenges and boycotts.
In Europe, it was revealed that the EU is making its anti-pollution plans a bit more aggressive, and will aim to cut down its reliance on fuels that are harmful to the environment much faster. It will likely also reveal legislation to encourage its trade partners to follow suit, or face higher import taxes.
