Asian equities started off the week extremely bullish, following Wall Street’s bullishness on Friday post the NFP data which saw a much better than expect figure being released (287K vs 175K). The Nikkei was up 3.6% as fresh stimulus is expected to hit the Japanese economy soon. The ASX 200 gained 1.9% with political stability returning now that clarity has been reached regarding the election, in which Turnbull declared a narrow victory. The Shanghai Composite gained 0.9%despite a lower CPI reading which indicated that domestic demand remained sluggish.

Over the weekend the S&P affirmed Germany at AAA with a stable outlook despite recent Brexit events. While for the UK, analysts have been speculating over the upcoming BOE meeting, in which we are expecting the BoE to slash rates. This will be the key risk event of the week as analysts are predicting a cut from anywhere between 0.25 and 0.5% and potentially more QE as the UK turns the money presses back on.

Commodities saw gold bid in the early Asian session before a improved risk appetite saw the precious metal give back its gains while crude slipped gradually as Saudi Arabia`s Energy Minister stated that markets are more balanced with stabilising prices.

Today’s upcoming data is as follows:


  • Eurogroup meeting


  • FOMC Member George Speaks


  • NAB Business Confidence previously at 3