The infoshot to help kick-start your week
Sanae Takaichi wins historic vote to become Japan’s first female prime minister
The 64-year-old won a clear majority on Tuesday – 237 votes in the powerful Lower House and another 125 in the Upper House – as leader of the ruling Liberal Democratic Party (LDP). Her economic views align closely with those of former Prime Minister Shinzo Abe, who promoted a reflationary policy framework known as “Abenomics.” She has long called for aggressive government spending to boost Japan’s economic growth rate and criticized the Bank of Japan for tightening monetary policy.
Gold has its biggest fall since 2013
Gold and silver saw their steepest selloff in years as investors apparently decided that the recent rally left them overvalued. Spot gold prices slumped as much as 6.3%, the biggest decline in more than 12 years, while spot silver dropped as much as 8.7%. Shares of gold miners plummeted, too, with top producer Barrick Mining, Newmont and Agnico Eagle Mines all falling by more than 8% on Tuesday morning.
Oil price jumps following US sanctions on Russia’s Rosneft and Lukoil
The price of oil jumped after the US announced sanctions on Russia’s biggest oil producers, as Donald Trump intensifies pressure on Vladimir Putin to end the way in Ukraine. He’s also seeking to squeeze Russia’s key crude buyers – India and China. Flows of Russian oil to major Indian refiners are expected to fall near zero.
US inflation hits 3%
Both the headline CPI and the core came in a tenth of a percentage point lower than expected, with monthly increases of 0.3% and 0.2% respectively. A jump in the seasonally adjusted gasoline prices contributed to the faster monthly headline pace than the core reading, and shelter costs were among the items behind the core increase. Airfares and recreation were among other gainers, while car insurance and used vehicles were among the few major items that dropped.
Coming Up:
- FED interest rate decision, Wednesday 29 October at 18:30
- ECB interest rate decision, Thursday 30 October at 13:15
- Eurozone CPI, Friday 31 October at 10:00
Notice:
For regulated financial advisers and investment professionals only, Copia does not provide financial advice, and the contents of this document should not be taken as such. The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated but is not an indicator of potential maximum loss for other periods or in the future.
