Ambiguous and contradictory signals from international markets present a puzzle for investors today. On Friday night shares were generally lower, but on narrow depth. Commodities bounced after a week of pressure. The US dollar fell, but the Australian dollar fell further. The performance of Asia Pacific markets today is a coin toss, despite a negative indication from futures markets.
A slump in construction activity weighed ion European shares. US data gave a more optimistic take, with industrial production and consumer comfort on the rise. Weaker than forecast trade prices contradicted these numbers and a lift in capacity utilisation.
Traders are focussed on two areas; a surge in commodity markets and explosive moves in crypto currencies. While Bitcoin trading is safely left to the brave, the commodity market moves could see support for Energy and Material stocks in today’s session. A key question is whether the positive indication for the global industrial outlook will see regional share markets resume their recent rallies after corrective moves last week.