Dollar VS Yen: Surprise in the leadership race in Japan to do robust on the financial markets

On Saturday, the liberal democratic party in power typed Sanae Takaichi, positioning the conservative legislator to become the first woman Prime Minister of Japan.

The markets expected Shinjiro Koizumi to be more prudent to win. But the LDP’s decision to go with Takaichi, which promotes more loose tax and monetary policies, could shake the bond market as expectations increase that Tokyo will emit more debts while the Central Bank rethink the increases.

The burden of Japan debt already more than 200% of its GDP, the prospect of more recovery expenses fueled by the debt could lead investors to require higher rates on long -term bonds.

This could in turn add more upward pressure on bond yields elsewhere, such as the United States, which is based strongly on Japanese investors as higher buyers of the Treasury debt.

The yield on the 10 -year treasure was stable at 4.121%. The US dollar increased 1.2% compared to Yen and up 0.2% compared to the euro.

The term contracts linked to the industrial average of Dow Jones increased by 37 points, or 0.1%. Tower contracts on S&P 500 increased by 0.1% and the NASDAQ’s term contracts added 0.1%.

American oil prices increased by 0.9% to $ 61.44 per barrel, and Brent Brut added almost 1% to $ 65.15. Gold increased by $ 3,911.60 per ounce.

Takaichi should officially become Prime Minister during a parliamentary vote later this month, and his approach to President Donald Trump will also be examined.

While she previously suggested in Japan to renegotiate the trade agreement he has concluded with the United States this summer, Takaichi attenuated his rhetoric after obtaining the point of direction of the LDP on Saturday, saying that it is not on the table now.

Meanwhile, the financial markets must continue to combat the closure of the current government, which does not show any sign of the end of soon and will keep the key economic indicators under the Wraps.

This leaves the release of Wednesday of the last political meeting of the Federal Reserve as a main economic report to be looked at in the coming week, because the central bank is self -funded and not affected by the closure.

Several Fed officials should also speak throughout the coming week, including President Jerome Powell on Thursday.

Since the government closed the Bureau of Labor Statistics from publishing its report on jobs for September Friday, Wall Street turns to alternative gauges in the private sector.

On Sunday, the chief economist of Moody’s Analytics, Mark Zandi, warned that there was essentially no employment of employment in September, citing the data of Revalio Labs and ADP.

“The main thing is that not having BLS employment data is a serious problem to assess the health of the economy and make good political decisions,” he said in a series of messages on X. “But private data on employment admirably fill the information gap, at least for the moment. And these data show that the labor market is low and weakens.”

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