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The main bright spot is that the declines in the oil price looked to have slowed and the price of put options on both WTI and Brent continue to decrease, showing investors see less downside risk for oil at these levels.
The Japanese cabinet formally approved the 28 trillion yen (US$275 billion) fiscal spending package yesterday, including 4.6 trillion yen in new outlays in this financial year. But the markets were unimpressed in a great display of “buy the rumour, sell the fact” trading. The IMF also released its Article IV report on Japan stating that far more needs to be done with regards to structural reforms in Japan, such as easing the ability of Japanese firms to fire employees, making it easier for women to stay in the workforce throughout their careers, and loosening their strict laws regarding immigration. Suggestions seemingly likely to fall on deaf ears.