Data from Japan resulted in a record CPI drop and jobless rate. Job availability in Japan sank to a record low, reinforcing views that it will take time for the job market to recover despite a pick-up in corporate activity. It was the third straight month of record falls in the index, and the biggest drop under calculation methods dating back to 1970.

July also marked the fifth straight month of annual falls. Core consumer prices in Tokyo, available a month before the nationwide data, fell a record 1.9% in August from a year earlier, more than a market forecast of a 1.8% decline. Japan’s economy returned to growth in the second quarter, pulling out of its longest recession since World War Two, but analysts warn of a rocky road ahead as the recovery was based on short-term stimulus efforts around the world.

In the U.K the market will be closely looking at the GDP data released at 8.30am.Today’s data from the U.S, consumer sentiment and personal income, will provide more clues about the U.S. consumer. Consumer sentiment, reported at 2:55pm, follows on a better than expected consumer confidence report earlier this week. Personal income is released at 1.30 pm.

The UK market and the European markets have opened up in positive territory. U.S futures markets are pointing to a flat opening when their markets resume trading this afternoon.

Sources: Reuters: BBC: Bloomberg: Lawshare: Deutsche Bank (db): Proquote: Financial Times: Wall Street Journal: CLSA: Sharescope: Market News. Capital Economics: CNBC: Wikipedia: GaveKal:

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