More record highs on Wall St will push Asia Pacific markets higher at today’s open, according to futures traders. However a data packed week and stock reporting seasons around the globe should see market focus turn to the numbers. A weakening US dollar may prove a brake on any investor exuberance.
The positive stock impulse is further supported by rallies in oil and gold. Disappointingly copper and iron ore dropped despite the currency support across the commodity complex. Traders highlighted weaker than expected US GDP growth in the advance estimates as a catalyst. Share market bulls pointed to stronger durable goods orders and prices to justify the gains.
Almost one third of US companies have reported quarterly earnings so far, and forecast beating results underpin the rally. In Japan more than 100 top companies will inform investors this week. On Friday Capitaland reports in Singapore and Australian reporting will hit full stride next week.
A full hand of macro data could see market volatility increase across the board this week. Highlights include China PMIs, Japan retail sales and Australian inflation data. Markets are expecting no change from the FOMC this Thursday but the curiously week US dollar will intensify focus on Fedspeak. The release of non-farm payrolls on Friday nights caps a hectic data week.