A couple of stories today--one about retailers becoming like newspapers and another one about retailers hitting the recession alarm--pretty much tell the retail tale. Much of the money expected from lower energy prices didn't find it way into shopping as consumers upped their savings rates, something the pundits neither expected nor wanted ti consider.
Meanwhile, overnight Reuters reported that the Bank Of Japan issued a statement saying they
"will act decisively using its "ample" policy options if needed to achieve its 2 percent inflation target." Quoting Bank Governor Hauhiko Kuroda, they said Kuroda noted the bank would not stand still until the effects of previous easing measures prove effective.
"We will take monetary policy measures in a timely, forward-looking manner," Kuroda said,
"Risks to the economy are tilted to the downside," he said, pointing to uncertainty over the global economy, volatile financial markets and their effect on business sentiment.
The above sounded to investors like another warning sign causing the yen to soften after rallying when the BOJ decided not to sit tight. The point here is consumer spending or the lack thereof is not just isolated to the U.S. Some have accused consumers of being the cause for a lack of a sustainable recovery and that magical 2% inflation global central bankers crave so hardily.
Japanese stock were lower after the yen eased up after being up against the dollar falling 0.2%. Part of the problem has been the U.S. The Fed has eased off talk about interest rates of late and the outlook for the economy given the above-mentioned retail sector is hardly buoying investor spirits.
Elsewhere, the Hang Seng Index was recently off 0.9%, Australia’s S&P ASX 200 was down 0.7% and the Shanghai Composite Index was flat, according to the WSJ.
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