Market Brief
China published a better than expected PMI overnight standing at 50.2 against a consensus of 49.9 and a prior reading at 50.4. HSBC and Markitt also released a similar Producing Manager's gauge that marked the biggest slowdown in seven month for the Chinese manufacturing sector, underscoring the need for further intervention by the PBoC and the government. The CNY appreciated 0.08% against the USD, opening lower than Friday’s close and the pair did not manage to close the weekend gap. The Shanghai Composite index initially opened higher with a 0.38% gap, but failed to maintain the gain and closed near Friday’s close at 2224.37. Japan's Tankan index of large manufacturers read at -1, better than the forecast as well as prior -4. The quarterly negative data showed that pessimists outweighed optimists by less than the surveyed economists were expecting. The JPY was the only G10 currency to have appreciated as it gained 0.34% against the USD from last week’s close. As for commodities, the CTFC reported that hedge funds increased their bullish bets over 18 U.S. futures by 15% on average to 724,783 contracts by the end of last week. The spike in commodity demand comes in reaction to the European summit by the end of last year after money managers withdrew USD 8.2BN from commodity funds in May, the largest outflow on record since September. Gold rose 2.18% by the end of last week after having traded in a tight range, and silver gained 3.64%. Nevertheless spot gold and silver did not manage to retain last week’s gains fully, reverting lower to trade at 1591.70 and 27.29 respectively. Commomdity-linked currencies traded in a tight range overnight, with the AUD losing 0.09% against the USD and the NZD almost flat. The CAD has been decoupling from other commodity currencies for the past few weeks and correlating with events out of the European crisis, appreciated 0.12% last night against the greenback over the relief measures provided by the summit for Italy and Spain. Today’s economic calendar will shed some light over manufacturing numbers for Spain, Switzerland, France, Germany, the UK, the EU and the US. What’s more, Swiss retail sales will be published at 07:30 GMT. Unemployment levels for Italy and the EU will be released at 08:00 and 09:00 GMT.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 9003.48 | -0.04 |
| Hang Seng Index | 19441.46 | 2.19 |
| Shanghai Index | 2224.37 | -0.05 |
| FTSE 100 Index | 5571.15 | 1.42 |
| DAX Index | 6416.28 | 4.33 |
| SMI Index | 6066.86 | 1.34 |
| DJIA Index | 12880.09 | 2.2 |
| Global Indexes | Current Level | % Change |
| Gold | 1591.70 | -0.36 |
| Silver | 27.29 | -0.69 |
| VIX | 17.08 | -13.34 |
| Crude wti | 83.80 | -1.37 |
| USD Index | 81.78 | 0.19 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Chinese HSBC Manufacturing PMI | -- | 48.10 | CNY/02:30 |
| AU Commodity Prices | -- | -10.2% | AUD/06:30 |
| SP Manufacturing PMI | 41.5 | 42.0 | EUR/07:13 |
| CH Retail Sales (YoY) | 5.0% | 0.1% | CHF/07:15 |
| CH SVME PMI | 45.0 | 45.4 | CHF/07:30 |
| FR Manufacturing PMI | 45.3 | 45.3 | EUR/07:50 |
| GE Manufacturing PMI | 44.7 | 44.7 | EUR/07:55 |
| IT Unemployment Rate (MoM) | 10.4% | 10.2% | EUR/08:00 |
| EU Manufacturing PMI | 44.8 | 44.8 | EUR/08:00 |
| UK Manufacturing PMI | 46.7 | 45.9 | GBP/08:30 |
| EU Unemployment Rate | 11.1% | 11.0% | EUR/09:00 |
| US ISM Manufacturing Index | 52.0 | 53.5 | USD/14:00 |
| JP Monetary Base (YoY) | 3.6% | 2.4% | JPY/23:50 |
Currency Tech
EURUSD
R 2: 1.2824
R 1: 1.2748
CURRENT: 1.2618
S 1: 1.2433
S 2: 1.2386
GBPUSD
R 2: 1.5793
R 1: 1.5734
CURRENT: 1.5661
S 1: 1.5454
S 2: 1.5404
USDJPY
R 2: 80.920
R 1: 80.620
CURRENT: 79.59
S 1: 79.140
S 2: 78.790
AUDUSD
R 2: 1.0387
R 1: 1.0279
CURRENT: 1.0226
S 1: 0.9969
S 2: 0.9903
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
