AM Dear Dairy

China is still on holiday so the nights aren’t what they used to be, but they’ll be back with us Sunday night.  In the meantime we had some interesting data to look at.


Japan’s inflation number came in as expected at -0.2%.  Though not a surprise it’s sobering to see that apart from a few months, Japan has been in deflation since 2008, part of that being material.  Ex food and energy the number was worse, at -1.1%.  These numbers may have contributed to the yen’s rise.  The yen has given up its move of the past three days and is back to 77, where it has been more or less since July.

Moving on to Europe, in a similar vein the Eurozone’s M3 data was released and was half a percent weaker than expected on an annualized basis, at 1.6%.  This is not a major surprise, but like the looming recession there, a bit sobering.  You can see that the improvement so clear from the end of 2009 has stalled at best.

But now from the What? Me Worry department we can see the Dax continuing its frogmarch higher (so to speak), up 13 out of 20 sessions and joining the growing number of exchanges up over 10% for the month.  The market never divulges its secrets but it looks an awful lot like Mario Draghi’s “QE Europa” LTRO deserves the credit.