Quick Recap
Short and sharp this morning as I am having no end of internet problems and all the action was in Asia yesterday anyway.
On the data front last night there was more evidence that the US economy is still weaker than people think. Sure jobless claims at 274,000 was still pretty solid but traders are ignoring labour market strength in favour of more generalised weakness. They focussed on the Philly Fed survey which eased from +7.5 to +6.7 and the Markit “flash” manufacturing index also eased lower from 54.1 to 53.8 in May. Expectations were for a rise.
In the end US stocks closed just shy of all-time highs after more weakish data had stock and bond traders focused on an enduring delay to the Fed’s first rate hike. European stocks were marginally higher while crude oil surged back to retest the breakout level from earlier this week. On Forex markets it was quiet but the weak data sapped the US dollar’s recent rally of strength.
On the day
On the data front Mario Draghi speaks today and we get a BoJ press conference after the monetary policy statement. Tonight German GDP is going to be very interesting and important while Ifo is also out. US CPI tonight is huge given Fed discussions and then we get Mark Carney and another Mario Draghi speech tonight.
Here’s the overnight scoreboard (9.15am AEST):
- Dow Jones flat at 18,285
- Nasdaq up 0.38% to 5,090
- S&P 500 up 0.23% to 2,130
- London (FTSE 100) up 0.09% to 7,013
- Frankfurt (DAX) up 0.14% to 11,864
- Paris (CAC) up 0.26% to 5,146
- Tokyo (Nikkei) flattish at 20,202
- Shanghai (composite) up 1.89% to 4,530
- Hong Kong (Hang Seng) down 0.22%
- ASX Futures Overnight (SPI June) +19
- US 10 Year Bond -0.04% to 2.25%
- Australian 10 year bond 2.93%
- AUDUSD: 0.7892
- EURUSD: 1.1107
- USDJPY: 121.00
- GBPUSD: 1.56588
- USDCAD: 1.2197
- Crude: $60.76
- Gold: $1,206
- Dalian Iron Ore (September): 422
CHART OF THE DAY: GBPUSD – what a trendline
Gee Whiz its been great trading levels and trend lines these past few week.
GBP is just another example.
Yesterday on the ASX 200 I said “Look at this support. Solid as a rock – but if 5,555 gives way watch out. Respect the level unless or until it does.” That remains the case
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