Risk off sentiment drove the market in yesterday’s trade as the energy complex suffered losses due to lower crude prices, while safe haven currencies strengthened.

The fall in crude price came after the UAE oil minister dampened the outlook for tomorrows OPEC meeting by stating that he is happy with the current price of crude and that he saw the market as moving to self-correction, implying he would not back an oil supply fixing.

Equities in the US finished lower with the DJIA losing 0.5%, the S&P 500 losing 0.1% and the NASDAQ-100 shunning the trend to finish higher with a gain of 0.25%.

Asian equities largely followed Wall Street’s lead with the Nikkei 225 losing 0.6% with the strengthening in the JPY ​dragging exports lower, the ASX 200 lost 1.1% despite better than expected GDP data as market price in a delay in further loosening by the RBA. Chines markets outperformed with the Shanghai Composite finishing flat and the Hang Seng gaining 0.4% as positive Manufacturing PMI figures were priced in.

In FX, the JPY strengthened across the board as it remains the safe haven currency of choice in the current economic climate with the USDJPY moved back below 110.00. The AUD gained across the board with the AUDUSD trading just shy of 0.7300 after better than expected GDP data inspired bulls. The GBP was back under the gun yesterday as polls now show UK voters likely to vote for an exit from the EU and is likely to remain volatile and sensitive to any news regarding the BREXIT.

Today's expected economic data is as follows:

UK

  • Manufacturing PMI expected at 49.6
  • Net Lending to Individuals m/m expected at 5.3B

USA

  • ISM Manufacturing PMI expected at 50.5

NZD

  • GDT Price Index previously at 2.6%

AUD

  • Retail Sales m/m expected at 0.3%
  • Trade Balance expected at -2.11B