Japan’s GDP expanded 4% in the three months to June. The new figures from Japan’s Cabinet Office are the fastest growth figures for two years, suggesting Japanese consumers are finally starting to spend. Quarter-on-quarter GDP was up 1%. GDP growth has now ticked up for the last six consecutive quarters.
The news helped give Asian shares a lift generally though not the home market: the Nikkei 225 fell almost 1% following the news. North Korean-US tensions remain high and underwhelming Chinese data – lower Chinese factory output – was also a dampener.
This morning the euro is at $1.1817 against the dollar while the pound is still – just – the right side of $1.30 at $1.3007. The next bout of important data arrives tomorrow – UK consumer price index (CPI) news followed by more labour market growth on Wednesday. Expect much talk about cash-strapped UK households and, of course, Brexit…
- UK FTSE 100 7,309.96 -1.08%
- Dow 21,858.32 +0.07%
- S&P 500 2,441.32 +0.13%
- Nasdaq 6,256.56 +0.64%
- Nikkei 225 19,547.07% -0.93%
- DAX 12,014.06 0.00%
- CAC 40 5,060.92 -1.06%
- Gold 1,293.10 -0.07%
- Oil WTI 48.77 -0.10%
New RPI to set 2018 train fare price rises
So far the consensus on UK CPI is that inflation for July will come in at 2.7% compared to 2.6% in June. June’s dip was not expected, much of it on the back of lower oil prices, helping many motorists. Bear in mind that the May figure was 2.9%.
The Tuesday update is also when the figure – RPI – for calculating next year’s rail fares will be taken. It’s thought this figure will be 3.5%. Recent rising prices of goods and services include a rash of energy price hikes (think EDF, etc).
New analysis from the RMT union claims rail fares have risen by 32% in the last eight years while average earnings have increased 16%. "Government policy of suppressing workers' wages while at the same time presiding over corporate welfare on our privatised railway," RMT general secretary Mick Cash said, "has resulted in a toxic combination of fare rises easily outstripping wages."