Drop in Nikkei hurts Bank of Japan's balance sheet

TipTV’s Zac Mir and Bill Hubard, market analyst at Opteck.com discussed central banks and their control over financial markets in the opening segment of the macro show. Mir questioned the capitalist system which takes pride in the minimal intervention policy, by stating the financial markets are being controlled by Central Banks and Governments. Hubard noted that back in Greenspan era, central bankers were reactionary, while today as Mir stated they are in control of the markets.

Hubard said that Fed may have reiterated that they are data dependent, but he still feels a June rate hike is on the table. Both experts also took note of horrible Japanese economic data, with Hubard pointing out that drop in Nikkei could damage BOJ’s balance sheet, since it owns 50% of the major Nikkei stocks.

Hubard concluded the opening segment by stating the equity market rally since Feb low is not a news anymore, however, two sectors have been laggards viz. Banks and Biotech.