On a quiet day for macro news, markets have focused on the as-expected outcome in Japanese Diet upper house parliamentary elections which saw the ruling Liberal Democratic Party coalition lose its majority. Japanese Premier Shigeru Ishiba is saying he will remain in office despite the setback, which followed a similar loss of its majority in the more powerful lower house last year.

Ishiba is in the midst of high-pressure talks with the US aimed at heading off crippling tariffs on Japanese goods, especially autos. In his weakened position, Ishiba or any successor is seen as more likely to pursue tax cuts and other expansive fiscal policies along with more restrictive immigration policies. JGB yields rose ahead of the election on the expectation of this outcome. Ishiba was pursuing a more conservative fiscal policy as Japan faces the limits of its borrowing ability. Now, as with the US, the market sees significant fiscal expansion and debt issuance coming. On trade, a weaker Ishiba also plays a poorer hand in talks with President Trump, and presumably will have more trouble getting the Diet to approve any agreement, if there is one.

Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.

Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.