Markets as various as oil, German shares and the US dollar ran out of steam on Friday night. Recent positive momentum for risk assets may falter this week although a lack of support for gold and bonds suggest investors are unfazed. Important data in the Asia Pacific region could inform market moves.
Investors took profit as the US dollar trimmed gains. The strength of the previous three weeks left the currency elevated. Disappointing trade price data may have weighed, although some traders were looking for excuses to sell. The softening dollar did not help investors. Although some major indices recorded small gains volumes were generally poor.
China retail sales and industrial production due tomorrow will speak directly to global growth prospects, and may determine market direction for the week. In Australia wages and jobs data should see a focus on the rate of growth and the potential for RBA action. Regardsless of the data the Australia 200 index is working under the handicap of three major banks trading ex-dividend this week, beginning with ANZ today.