US equities managed to post slight gains yesterday after trading negative for the majority of the US session as Chinese stocks continued to weaken, with energy companies feeling the majority of the brunt as crude prices continue to slide. The DJIA finished up 0.32%, S&P 500 finished up 0.09% and the NASDAQ-100 finished up 0.3%.
Today sees FOMC member Fischer speak and the JOLTS Job Openings number, expected at 5.41M, being released. Better than expected numbers will bode well for the USD as participants start believing in the positive upswing in the recent months jobs numbers.
No change in the bearish sentiment, which has driven the pound lower, on fears of a BREXIT and a much more dovish tone than expected as participants start to look at 2017 rather than 2016 for rate hikes. Todays Manufacturing and Industrial Production numbers, expected at 0.1% and 0% respectively, will be highly anticipated with lower than expect numbers sure to drive prices below the recent 1.4494 support level. Positive number will see some breathing space for bulls who will look to retest 1.4600 on the back of positive data. BOE Gov Carney is also due to speak later in the session and investors will be looking for clues regarding his stance on the current monetary policy, with any hawkishness expected to be well received by GBP bulls.
The Nikkei lost just over 2.5% yesterday as China continues to wreak havoc on the region and the global economy. BOJ GOV Kuroda is due to speak during the European session and investors will be watching for any hints that the BOJ is considering further loosening in its monetary policy in light of the recent pressure on the JPY. In Asian trade we will see China release its Trade Balance figures, expected at 339B, better than expect numbers will take some pressure off of Chinas equities and also the global stock markets in general.