Japanese Prime Minister Shinzo Abe is expected to delay a tax hike on consumption.
The expected move, if it turns out to be correct, proved to be another example of the old Wall Street bromide "Buy on the rumor, sell on the fact." And that Wednesday appears to be what Japanese investors did, pushing the Niiki to a seven year high in overnight trading, according to Reuters.
Japan's Nikkei (.N225) stole the limelight, jumping 1.6 percent to a fresh seven-year high after local media said that Abe will postpone a planned tax increase and call a general election for December in an effort to lock in his grip on power before his voter ratings suffer a slide.
Abe has said he will make up his mind on the tax increase after assessing the July-September GDP data due next Monday, widely expected to highlight the fragility of the rebound following a sharp contraction in the second quarter.
The first increase in the two-stage sale tax hike in April knocked the Japanese economy hard, and markets view a delay in the second-phase of the tax hike as positive for growth.
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Those who follow us know we've been suggesting oil stocks irrespective of the feared glut are cheap and they represent value and opportunity for a while now. See our most recent post.
http://financialspuds.blogspot.com/2014/11/use-your-own.
Here's another view. http://www.bloomberg.com/news/2014-11-12/oil-futures-swing-bolsters-u-s-energy-stocks-chart-of-the-day.
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Those who follow us know we've been suggesting oil stocks irrespective of the feared glut are cheap and they represent value and opportunity for a while now. See our most recent post.
http://financialspuds.blogspot.com/2014/11/use-your-own.
Here's another view. http://www.bloomberg.com/news/2014-11-12/oil-futures-swing-bolsters-u-s-energy-stocks-chart-of-the-day.
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