ASIA-PACIFIC

Asian equities traded higher for a 3rd consecutive day as global risk on sentiment enters the markets. The Nikkei gained 1.3% as the JPY weakness kept exporters firm. The ASX 200 posted gains of 1.3%.

In Fx the AUD traded higher after better than expected trade figures which saw the AUDUSD retake the 0.7300 handle as it broke through its 200 Daily moving average. The JPY weakened across the board as risk n sentiment saw flows out of the safe haven JPY.

Data due out of the region is limited with the AUS Retail Sales m/m (expected at 0.4%) expected to be the star.

USA

US equities remained near 2 month highs after strog moves in the financial and energy sectors. The DJIA finished up 0.2%, the S&P 500 gained 0.41% and the NASDAQ managed a 0.2 gain.

The Fed`s Beige Book state that employment market continue to improve which have coincided with stable consumer prices after consumer spending was seen to increase. The sentiments were echoed by the better than expected ADP figures which printed at 214K vs the expected 190K and Fed`s Williams saying that wage growth is on the rise.

Today sees the following data being released out of the US:

  • Challenger Job Cuts y/y prev. 41.6%
  • Unemployment Claims exp. 271k
  • Revised Non-farm Productivity q/q exp. -3.2%
  • Final Services PMI exp. 49.8
  • ISM Non-Manufacturing PMI exp. 49.8
  • Factory Orders m/m exp. 2.1%

UK

The GBP continued its positive run yesterday despite worse than expected Construction PMI figures ( 54.2 vs 55.5), it will be interesting to see if the relaxing political pressure from a possible BREXIT will be enough to allow the GBP to strengthen if the upcoming Service PMI (expected at 53) is released worse than expected.

CRUDE OIL

A decline in US output (-0.275%) counter balanced larger than expected Inventory data (10374k vs 3400K) to see crude post its highest close in 2 months.