ASIA

Asian equities traded lower following a wall street negative close driven by a decline in crude prices as over supply continues to weigh on the commodity. The Nikkei lost 0.85%, A~SZ 200 lost 2.16% and Hong Kong’s Shanghai Comp lost 0.2%.

AUSTRALIA

Sentiment in Australia was dampened by poor earnings from its giants as the continent tries to stave off the impact of sliding commodities. The release of Private Capital Expenditure will be watched by investors later as they expect the figure to have declined by -3.1%, less than the previous -9.2% as business sentiment sours and capital expenditure grinds to a halt.

UK

The GBP continued to slide on BREXIT fears and a dovish Interest rate stamen which saw the GBPUSD break below 1.40 and now trading at fresh multiyear lows. Exit polls continue to be released and are tight with some showing a BREXIT on the cards and others showing it just off. News regarding the UK`s stance on its membership in the EU will continent to create volatility in the GBP, with the bias being down as GBPUSD squeezes towards mid 1980`s prices.

USA

US equities traded in the red in yesterday’s session with the DJIA shedding 1.1 %, the S&P 500 shedding 1.2% and the NASDAQ losing 1.6%. FED Discount Rate minutes bore a dovish undertone as they showed that no member board sought a discount rate hike as they sited mixed economic performances and lacklustre wage growth pressure as the main reasons for their decision. Today sees the release of New Home Sales figures, expected to show an increase of 522k, marginally up from the previous month’s increase of 544K. Better than expected figures will see an uptick in the USD which is much needed after yesterday CB consumer figures (92.2 vs 97.4) failed to impress.

COMMODITIES

Crude oil slid 7% off of yesterday’s highs as oil producers can’t meet eye to eye over a solution to the current oversupply of crude. Iran have been reported to have dismissed Russian and Saudi attempts to freeze output, calling the measure a joke. Saudi Oil Minister, Mr Al-Naimi, stated that they are pro free market forces and further talks will need to be held for a solution to the overproducing to be dealt with. Until then, we expect oil prices to slide as recent stability is fractured due to the game of chicken continuing. Perhaps, todays Crude Oil Inventories can help the bulls out, with inventories expected to have marginally decreased from 2.1M to 2 M this week.