Positive leads from commodity and share markets are pointing to a good start to the week for Asia Pacific markets. Investors are once again facing potential market hurdles erected by a slew of economic, central bank and company announcements. Data inspired US dollar strength should add to upward momentum today.
Precious metals slid again in Friday night trading. US dollar gains after a strong reading on US non-manufacturing activity is the likely culprit. However industrial commodities largely overcame the currency hit, and oil hit a two year high. Commodity markets are showing clear signs of further improvement in global growth prospects and risk appetites.
Major European markets rose in subdued conditions. The switch into US trade brought strength as Apple unveiled consensus beating earnings. The Nasdaq outpaced the S&P 500 index. The gains came despite disappointment on the monthly non-farm payrolls read as traders appeared to ignore the storm affected jobs reading.
China trade and inflation numbers this week may determine the overall direction of the markets. Tomorrow brings two events for Australian investors. The RBA will release its interest rate decision a half hour before this year’s hopefuls contest the Melbourne Cup. No change in interest rates is the safest bet across the two events.