ASIA-PACIFIC

Equity markets across the region finished in the red after a uninspiring wall street session and the pricing in of the BOJ not changing their policy. The Nikkei lost 0.7%, the Shanghai Comp lost 0.4% and the ASX 200 lost -1.2%.

The JPY traded relatively flat yesterday and was kept slightly bid on safe haven buying and a more dovish tone by the BOJ who voted 8-1 to maintain the monetary base compared to last month’s 7-2 has strengthened the JPY further ad the USDJPY tests the support at 113.

The AUS on the other hand has weakened against the board after the RBA continued its dovish rhetoric and the impact of falling commodity prices was priced in.

USA

US equities closed mixed yesterday with markets largely flat. The DJIA finished up 0.09%, the Nasdaq closed up 0.13% and the S&p500 lost 0.13%. Today should be livelier with the following data out of the US today:

  • Core Retail Sales m/m exp -0.2%
  • PPI m/m exp -0.2%
  • Retail Sales m/m exp 0.1%
  • Core PPI mm exp 0.1%
  • Empire State Manufacturing Index exp -10.3

COMMODITIES

Oil prices extended their retreat from 3 month highs as the much anticipated OPEC and Non-OPEC member meeting has been delayed. Markets will be looking out for any jawboning from any one of the major players to try and decipher the future of crude prices. As it stands now, I would consider crude overpriced purely based on how many moving pieces need to fall in place for a worldwide collusion on an oil supply freeze.

Gold is trading at 2 week lows after a firm USD and in anticipation of this week’s FOMC meeting.