Market News Today – USD up from 1-month lows (USDIndex 92.00 from 91.75 on Friday) – Chinese & Asian stock markets rise, despite weak Chinese PMI and other Asian data. US equity markets closed lower on Friday (-0.54% USA500 4395) led by -7.56% fall for AMZN. Yields closed the week down at 1.239%. Overnight – HSBC beat earnings significantly, adding to the good news from other European banks. AUD housing market still hot, JPY consumer confidence ticks up and German Retails sales bounce back significantly. Gold is down again at 1808, and USOil is down to, but up from a test of 72.00, earlier.
Week Ahead – Another key week to start the month – We have the RBA, BOE, CAD Jobs and NFP along with a raft of PMI data.
European Open – DAX and FTSE 100 futures are up 0.5% and 0.4% respectively, U.S. futures are posting gains of 0.5-0.6%, after an upbeat session across the Asia-Pacific region overnight. In FX markets both EUR and Sterling are little changed against the Dollar, with EURUSD at 1.1873 and Cable at 1.3909. China jitters eased and there was some progress on the US infrastructure (much reduced) spending plan, which helped to underpin sentiment. Virus developments in Asia continue to cause some worries, but for Europe at least the hope is that advanced vaccination campaigns will allow economies to get through this wave without the type of restrictions that could seriously hurt the recovery. Central banks are still cautious though as there are still lingering risks and that will likely also keep the BoE in wait and see mode this week.
Today – EU, UK, US Manufacturing PMI (Final), US ISM Manufacturing PMI Earnings: AXA, Heineken,
Biggest FX Mover @ (06:30 GMT) AUDNZD (+0.19%) Has moved up from 1.0517 (2021 and 33 week lows) on Friday. Weak breach of 21 EMA earlier, Faster MA’s aligned higher, MACD signal line & histogram under 0 line but moving higher, RS 55, neutral but rising, Stochs rising and already into OB zone. H1 ATR 0.0008, Daily ATR 0.0051.
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Stuart Cowell
Head Market Analyst
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