Market update: Oil spikes to $72.50

Market news

• European bond markets already underperformed yesterday, after a jump in UK inflation and as markets continue to evaluate last week’s ECB move.  The US Treasury rate is down, but yields in Australia and New Zealand jumped.

• Solid data on industrial production and a big bounce in the Empire State manufacturing index, along with weaker than expected trade prices contributed to the improved outlook. The USA500 bounced 0.85%, with the USA100 0.82% firmer, while the USA30 was up 0.68%. The JPN225 lost -0.75%, while GER30 and UK100 futures are up 0.08% and down -0.02% respectively, which suggests a cautious start to the session.

• Data: New Zealand Q2 GDP data much stronger than expected,  Australia’s employment report highlights lockdown impact & Japan’s trade data, which showed a huge deficit, as export growth slowed, also added to the negative risk backdrop. Canada’s CPI rose to a 4.1% pace in August from the 3.7% growth rate (y/y, nsa) in July.

• Tech shares got a solid push from Microsoft which announced a boost to quarterly dividends and an increase in share buybacks.

• The JPY strengthened and USDJPY declined to 109.20.

• The EUR and GBP declined against a largely stronger USD, which was only beating by the JPY.

• USOil spiked to $72.84, albeit from further reduction in stockpiles, helped lift the indexes. In European open it gapped down slightly at $72.38.

• Gold down for a 2nd consecutive day. Currently ay $1,784.

Today: Today’s data calendar will be closely tracked, with weekly jobless claims and Phily index in the tap, though none of the report should impact the outlook on near term Fed policy. The August retail sales report is the highlight.

Biggest Mover @ (06:30 GMT) USOIL rallied to $72.84. Fast MAs flattened imp[liyng to shorttterm correctio  howveer the puitlook holds positive as RSI is at 71 and MACD lines way above neutral zone and extending hgher. ATR(Daily) at 1.69 and ATR (H1) at 0.34.