Early in the week the focus will be Japan, with GDP numbers due in the Asian session Monday morning. The latest headlines from the Nikkei newspaper suggests that Prime Minister Abe is moving towards a delay of the sales tax hike by around 18 months. Japan’s Finance Minister Amari admitted there are risks associated with either going ahead with the hike or delaying it. Heading into Monday’s GDP release, which has been pinned as the key release for the sales tax hike decision, positioning is likely to ramp up. Once the G20 wraps up, Abe will probably be in a better position to comment on the latest speculation. There is a strong possibility that he might dissolve the parliament and call for new elections on Tuesday. The Bank of Japan will also end its monthly two day meeting, and comments from the bank are expected.

By Barry Norman, Investors Trading Academy.

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