Markets Are Headed Lower Following A Big Down Day In Japan

U.S. stock futures are negative after a rough day in Japan.

The Japanese Nikkei 225 fell 3.0% Friday as the Japanese yen strengthened against the U.S. dollar, despite a better-than-expected inflation reading there.

The June consumer price index revealed an annual inflation rate of 0.2%, up from -0.3% in May and ahead of the consensus estimate of 0.1% inflation.

Though the release suggests that “Abenomics,” the experimental stimulus program designed to reflate the Japanese economy after more than a decade of persistent consumer price deflation, may finally be kicking in.

Nonetheless, the dollar is 0.6% lower against a strengthening yen today, currently trading around ¥98.60.

Though futures in the U.S. are down slightly, European markets are mixed in morning trading.

The German DAX is down 0.2% and the Italian FTSE MIB 35 is 0.4% lower.

However, the London FTSE is up 0.1%, the French CAC 40 is up 0.7%, and the Spanish IBEX 35 is up 0.6%, although these markets have been trending lower since the open.

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