Markets stabilised overnight and recent strength in activity indicators continued to echo. The US dollar pulled back slightly from recent gains, both oil and gold rose, and US share market indices made another all-time high. The forecast for the Asia Pacific region is further gains in light trading.
The calm conditions could come to an abrupt halt. Money supply and investment data may drop in China anytime this week. Tonight US company reporting kicks off with investment group Blackrock and Delta Airlines showcasing quarterly earnings. Mixed messages from commodity markets could see intra-day volatility swing higher in the Asia Pacific region. Support for industrial commodities such as oil and copper sits ill with strength in gold and regional investors may attempt to unravel this contradiction.
Major Australian banks are in the spotlight as top executives testify before a House of Representatives committee. While the policy aims of the scrutiny are unclear the potential for further political damage to Australia’s corporate landscape is real, and trading in financial stocks will likely be subdued.
