The yen bounces as the Japanese Prime Minister keeps in power

By Mike Dolan. For example, editor, finance and markets

The Japanese yen firmed on Monday, while Prime Minister Shigeru Ishiba, weakened, promised to stay at the head of the government despite the loss of the majority of his coalition in the upper room elections on Sunday.

I will come back to this subject and the rest of the markets in the markets below. For example, Do not forget to consult the chronicle of the day. Moreover, where I explain why a sudden reversal of the euro and the threat of new American prices could encourage the European Central Bank to suspend its lower rate drops, even though deeper tensions could be covered in silence.

The market point of the day

• The ruling coalition in Japan has lost control of the upper room in Sunday elections. For example, more weakening the position of Prime Minister yen bounces japanese prime minister Shigeru Ishiba, who, however, promised to stay at the head of the party, invoking the imminent deadline for customs tariffs with the United States.
• The far-right Party Sanseeito. Meanwhile, hitherto marginal, is one of the great winners of the ballot, having won over with its warnings against a “silent invasion” of immigrants and its promises of tax cuts and increased social expenditure.
• BP appointed Albert Manifold on Monday. Moreover, former leader of the producer of CRH building materials, president of the group, in the hope of responding to investors’ concerns about its strategy and the weakness of its action.
• The standoff between Exxon Mobil. Similarly, Chevron for a very coveted South American oil field could announce an intensification of competition in the sector, while the leading assets are becoming scarce, analyzes King’s energy chronicler Ron Bousso.
• Asian imports of liquefied natural gas should remain asses in July. Furthermore, the most yen bounces japanese prime minister consumer region registering only very slight increase compared to June. Therefore, Find the analysis of Clyde Russell, king columnist.

The yen bounces as the Japanese Prime Minister clings

While the markets anticipated this month of “disasters” scenarios. Meanwhile, including a possible vacancy in power as the tariff deadline of August 1, the outcome of the ballot was perceived as a relief. Despite the pressure that persists on Ishiba. his desire to remain Prime Minister offers a minimum of stability for possible last -minute trade negotiations.

The Japanese markets were closed due to public holidays, and only the world exchange markets clearly reacted. After touching a three -month low at 149.18 yen for a dollar last week, the Japanese currency firmed under 147.7 yen after the results, resulting in the dollar down on all currencies.

Another notable movement at the start of the session: the global bond markets. where the yields of yen bounces japanese prime minister American treasury bills and their European equivalents – perhaps by communicating vase with Japanese flows – have clearly decreased.

American yields fell on the whole curve. reaching a ten-day lower day, after their rebound last week, supported by reassuring data on production prices and inflation, as well as by the words of the “dove” of the Fed Council, Christopher Waller, which remains favorable to a recovery of rate decreases this month.

Waller said on Friday that he would accept the position of president of the Federal Reserve if President Donald Trump offered him. but the latter has not yet contacted him on this subject.

The Fed trajectory remains uncertain. between the persistent pressure of the White House on Jerome Powell and the even weak possibility, that Trump tries to dismiss him before the end of his mandate next year. The latest prices data, however, brought a certain respite.

FED -term yen bounces japanese prime minister contracts anticipate almost 70 % probability of a new drop by September.

But according to the Wall Street Journal. the Treasury Secretary Scott Bessent would have advised Trump not to dismiss Powell, due to the financial disturbances that this could cause.

Trump. who continued the WSJ on Friday and its owners, including Rupert Murdoch, for at least $ 10 billion following an article on a birthday message addressed in 2003 to Jeffrey Epstein, also denied the last article in the WSJ concerning Bessent.

The equity markets were stable. even slightly increasing around the world, the term contracts on Wall Street progressing before the opening on Monday.

The atmosphere was also supported by the remarks of the American Secretary of Commerce. Howard Lungick, who said he was confident on Sunday as to the possibility of a trade agreement with the European Union, while recalling that August 1 remains a deadline for yen bounces japanese prime minister the entry into force of new prices. Lutnick said he had just exchanged with European negotiators and that there was “a lot of margin” for a compromise.

In addition. the Chinese Ministry of Foreign Affairs announced that the president of the European Commission, Ursula von der Leyen, and the president of the European Council, Antonio Costa, will meet the Chinese president Xi Jinping on Thursday.

The business results season is continuing this week. notably with Tesla and Alphabet publications – two heavy goods vehicles in difficulty this year – expected on Wednesday.

In Europe. Ryanair jumped more than 6 %, the first low-cost company on the continent having more than doubled its net profit in the April-June quarter.

Graphic of the day

Chinese exports of rare land magnets to the United States has multiplied by more than seven in June compared to May. marking a strong resumption of the flows of yen bounces japanese prime minister these strategic minerals, used in electric vehicles, wind turbines and missiles, after a Sino-American trade agreement. China. which provides more than 90 % of the world’s offer, had decided in early April to add several rare land products to its list of export restrictions in reprisal to American prices, causing large supply chain problems.

But the two countries found a compromise last month: Washington enabled the Nvidia flea manufacturer to resume the sale. of his ia H20 fleas to China. In addition. Beijing discreetly published its first quotas for rare land extraction and refining for 2025, without official communication – an additional sign of the tightening of Chinese control in this key sector.

Events to follow today

• Advanced indicator of June in the United States (2:30 p.m.. Paris time); June production price index in Canada
• Results of American companies: Verizon, Domino’s Pizza, Steel Dynamics, WR Berkley, NXP, Roper, Alexandria Real Estate

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