Asia Pacific markets are looking at a negative start to the trading week. A resurgent US dollar, falling oil and base metal prices and pressure on European and US stocks on Friday night will likely cruel local sentiment. However a jammed market calendar will keep investors and analysts busy, and could see a number of changes of direction.
Currency markets remain calm. The US dollar’s post-Fed-announcement drift higher continues. Sterling remains the traders’ choice as it jumps and falters on Brexit news. Bond markets rallied on Friday night, pulling yields back below break out levels. Inflation reads this week in Japan, Germany, France, Italy, the UK and the US will speak directly to interest rates and may spark higher volatility in both bond and currency markets.
Futures markets are indicating opening stumbles across the region, with most indices around 0.5% in the red. Investors may trade cautiously ahead of industrial production data from China and Japan on Wednesday. On the same day Australian investors will also receive crucial news on third quarter wages growth, the missing ingredient in the Australian inflation pie. GDP data, retail sales trade numbers from numerous countries will round out the week. Please see the Market Calendar on CMC’s trading and investing platforms.