Early trading today saw Australian shares dropping by 1.4 percent, a decline of 1.1 percent for Nikkei, shrinking its monthly gain to 1.8 percent but saw its quarterly increase to 5.8 percent. The Chinese Manufacturing PMI survey released today showed an accelerated activity in June from the previous month in the country’s manufacturing and services sector but the negative sentiments impacted the performance of Chinese shares.
The dollar continued its course on a downward trend in early trading today due to major central banks signalling an end to cheap money era, giving a boost to other major currencies. The dollar index dropped by 0.1 percent to 95.560, poised for a 1.8 percent slide this week and it is down 1.4 percent for the month and nearly 4.9 percent for the quarter. After Bank of England Governor Mark Carney made surprise remarks on Wednesday about a possible rate hike, the sterling was 0.1 percent higher early trading today at 1.3023 adding to Thursday 0.6 percent gain. And Mario Draghi comments on Wednesday gave a boost to the Euro despite other sources suggesting he merely intended to signal tolerance for a period of weaker inflation not policy tightening, also saw today the EURO revisiting the 1.1445 one year high yesterday.
Regarding US tech stocks, the shares declined overnight due to a rotation into bank shares which lagged this year after the stress test programme that saw the Fed approving their capital proposals. In commodities, oil prices continued to rally this week following a decline in weekly US crude production. Us crude gained 0.65 percent to hit $45.18 a barrel narrowing its monthly and quarterly losses to 6.5 percent and 10.7 percent respectively. Brent gained 0.5 percent to $47.61 and its poised to have a 5.4 percent loss for the month and 9.9 percent for the quarter. Gold has seen little change in early session with about 8.1 percent increase in the same period but is gaining dur to the weakness of the dollar.
Coming up today, we have England current account report which looks at the difference in value between imported and exported goods, services, income flows, and unilateral transfers during the previous quarter. This release has impact on the pound or GBP currency with the forecast being -17.2B from the previous report of -12.1B. And for the Canadian dollar we have two releases expected today, the GDP m/m and BOC business Outlook Survey. Both announcements reflect on the Canadian economy and thus command attention and following.