Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (69630)	9/11/2006 9:23:53 AM
From: westpacific	Respond to of 110194

Japan - biggest drop in 20 YEARS, machine orders. ---- TOKYO, Sept 11 (Reuters) - Japan's machinery orders marked their biggest monthly drop in nearly 20 years in July, data showed on Monday, scaling down expectations for an interest rate hike in the coming months and sending the yen, bond yields and stock prices lower. Core private-sector machinery orders, a key gauge of corporate capital expenditures, fell 16.7 percent in July from June. The drop was the steepest since the government started compiling the data in April 1987. Separate government data released earlier showed that Japan's economy grew at an annualised rate of 1.0 percent in the April-June quarter, slightly more than initially estimated. The July machinery orders, well below a median forecast of a 5.3 percent decline, fuelled market speculation that the Bank of Japan will not raise interest rates by the end of the year. The data prompted the yield on the benchmark 10-year Japanese government bonds <JP10YTN=JBTC> to tumble 5.5 basis points to 1.665 percent, approaching the 5-1/2-month low of 1.600 percent touched earlier in the month. The yen slipped against the dollar and the euro, while the Nikkei share average dropped 1.78 percent to 15,794.38, its lowest close since Aug. 28. "This is another shock to the (JGB) market following the CPI and industrial production figures," said Tetsuya Miura, a bond strategist at Shinko Securities, citing soft consumer price index and weaker-than-expected industrial output data released last month. West ---Note, last time they had this big of drop the index in Japan was at 40,000 and market a top!