ASIA-PACIFIC

The Australian ASX 200 led the pack in the region, gaining 1.45% after commodity linked equities rallied. The Nikkei managed a 0.31% gain after a choppy session which saw a firmer JPY despite dovish comments out of BOJ Kuroda, who state that there are no limits or obstructions to the BOJ monetary policy as falling prices remains a real risk. Chinas, Shanghai Comp finished the session higher after gaining 0.71% as several large names released expectation beating earnings figures and the PBoC upped their liquidity injection once again.

Several releases are expected from the region today, with many expected to have large impacts on their respect economies and the region as a whole.

AUSTRALIA

  • AIG Manufacturing Index previously at 53.5
  • Commodity Prices y/y previously at -21.6%

JAPAN

  • Tankan Manufacturing Index exp. 8
  • Tankan Non-Manufacturing Index exp. 24
  • Final Manufacturing PMI exp. 49.1

CHINA

  • Manufacturing PMI exp. 49.3
  • Non-Manufacturing PMI previously 52.7
  • Caixin Manufacturing PMI exp. 48.3

USA

Equities in the US continued their recent run and closed in positive territory as markets further priced in the Fed`s dovish comments made the day before. The S&P 500 gained 0.44%, as APPLE closed above $110 per share, to close near 3 month highs. The DJIA gained 0.48% and the NASDAQ-100 finished the session up 0.52%.

Other data out of the region were largely bullish with the ADP figures showing better than expected figure of 200K vs 195K and Fed`s Evans stating that he still sees at least two rate hikes this year out of the FED. USD bears, however, shrugged this off as they continue to drive the USD lower.

Data out of the region today comes in the form of the Unemployment Claims (expected at 266K) and the Chicago PMI (expected at 50.5), which should both see some volatility as they form the appetizer for tomorrows main course- the NON-FARM PAYROLLS.

UK

The region is still plagued by poor economic data and political woes, with polls showing that majority of Britons would vote for the Britain to leave the EU as the BREXIT vote nears.

Today promises to be a telling day for the GBP with several economic releases taking place. Better than expected data with a hawkish tone, will see the GBP gain across the board.

  • BOE Gov Carney is due to speak at the Financial Stability Board Meeting in Tokyo.
  • Final GDP exp. 0.5%
  • Net Lending To Individuals m/m Exp. 5.1B
  • Index of Services Exp. 0.8%
  • Mortgage Approvals exp. 74K

EURO ZONE

Data out of the region has been neutral to positive of late, with confidence indicators showing a slight uptick from all sectors including; businesses, industrial, economic and consumer. Germany went on to post CPI y/y figures which beat estimates 3 fold, coming out at 0.3% vs 0.1%.

Today sees more data being released, market will be looking to the releases to confirm whether the EU economy is at least stabilizing, if not improving.

  • German Unemployment Change exp. -6k
  • EU CPI Flash Estimate y/y exp. -0.1%
  • EU Core CI Flash Estimate y/y exp 0.9%

CANADA

The USD/CAD has managed to shrug off the recent losses in crude and continues to trade at its multi-month lows of 1.2950. Today’s GDP m/m (exp 0.3%) figures will have Cad bulls waiting in anticipation as they look to recover more of their longer term losses experienced by the heavy sell off in crude.

CRUDE OIL

Crude continues to be driven lower, despite lower inventory data out of the US (2.3M vs 3.1M), as hopes of an output freeze have been dampened and markets begin to realize the enormity of the task of several parties honoring the potential deal.