Market Brief
China posted further declines in CPI this morning as it announced that consumer prices had fallen 1.5% in the year to April – making it 3 months in a row of declines. However, the government doesn’t see the need to shift its rate policy and further cuts in borrowing costs are increasingly improbable. The People’s bank of China stated that its aggressive cuts in late 2008 along with a hefty 4 Trillion Yuan ($585 Billion) stimulus package had done well to boost the economy – bank lending rising significantly in the first 4 months of the year. The Chinese Central bank Governor Zhou Xiaochuan said in Basel, Switzerland this morning that the declines in CPI simply reflected a correction to spikes a year ago in the cost of food and other commodities.
Toyota motors posted its first ever operating loss for year ending March 2009. Toyota shares fell as much as 5% this morning on the news that it had forecast a $8.6 Billion annual loss and that it would sell 1-million fewer vehicles this year. The focus now is on second-tier economic data such as machine tool orders and the like, while further declines are expected tentative signs of improving trade balance numbers and the global economy have investors somewhat optimistic – even if Japan has a significant uphill battle with falling exports, a relatively strong currency and dismal domestic numbers.
The EURUSD traded a tight 1.3668 – 1.3616 range throughout the night after breaking out of its 6 month triangle formation on Friday. Strong NFP numbers and encouraging Stress-test results have markets move away from the Dollar, Yen denominated havens to higher-yield currencies such as AUD and NZD.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 9451 | 0.2 |
| Hang Seng Index | 17087 | -1.74 |
| Shanghai Index | 2579 | -1.75 |
| FTSE 100 Index | 4420 | -0.94 |
| DAX Index | 4851 | -1.26 |
| DJIA futures | 8421 | -1.12 |
| Nasdaq futures | 1366 | -1.66 |
| World Markets | Current Level | % Change |
| Gold | 913.9 | -0.3 |
| Silver | 13.93 | -0.57 |
| VIX | 32.05 | -4.16 |
| Crude wti | 57.6 | -1.76 |
| USD Index | 82.63 | 0.13 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Canada - New Housing Price Index | -0.50% | -0.70% | CAD / 12:30 |
Currency Tech
AUDUSD
R 3: 0.8520
R 2: 0.8097
R 1: 0.7738
CURRENT: 0.7623
S 1: 0.7337
S 2: 0.7233
S 3: 0.7050
EURJPY
R 3: 137.40
R 2: 135.57
R 1. 134.33
CURRENT: 133.12
S 1: 130.92
S 2: 129.87
S 3: 128.95
USDSGD
R 3: 1.4980
R 2: 1.4882
R 1: 1.4803
CURRENT: 1.4590
S 1: 1.4500
S 2: 1.4445
S 3: 1.4270
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
