Crude oil climbs, NZD stabilizes ahead of more data
The back and forth match between bulls and bears that has been playing out this week across world markets continued today. US stocks shrugged off yesterday’s declines for the trading corrections that they were, rebounded through much of the day but tailed off toward the close, sending mixed momentum into today’s Asia Pacific trading. Overall, US indice4s continue to bounce back and forth in the trading ranges that have prevailed in recent weeks as traders await next week’s FOMC interest rate decision.
Crude oil, meanwhile, had another very strong day with WTI gaining over 3% as it continues to carve out a base. Today’s action appears particularly strong considering that oil market news wasn’t all that great, US oil inventories rose more than expected and chatter suggested a proposal for an OPEC/non-OPEC probably won’t get anywhere with Saudi Arabia opposed and Russia apparently looking for lower US production to balance the market. With copper also on the rise, it appears attitudes toward China’s economy and resource demand outlook continue to improve along with China and Hong Kong indices.
Currency trading saw USD weaken a bit enabling gold and paper currencies to rebound moderately. CNH has been among the top performers building on yesterday’s gains while AUD has been strengthening on the back of yesterday’s positive job numbers.
NZD took everything the RBNZ and traders could throw at it including the kitchen sink, and has stabilized as an initial wave of downward pressure subsided. Today the Kiwi Dollar could be active again with New Zealand PMI and more importantly, food price inflation numbers on the way.
There have been no major corporate announcements after the US close today.
Significant announcements released overnight include:
UK interest rate and QE 0.50% and £375B no change as expected
UK MPC voting 8-1 in interest rate, 9-0 on QE same as last month
US jobless claims 275K as expected
US natural gas 68 BCF vs street 76 BCF
US DOE crude oil inventories 2.5 mmbbls vs street 0.9 mmbbls
US DOE gasoline inventories 0.4 mmbbls vs street (0.15 mmbbls)
Canada new house prices 1.3% as expected
France industrial production (0.8%) vs street 0.7%
UK Halifax house prices 9.0% vs street 7.9%
Spain industrial output 5.2% vs street 4.3%
Sweden consumer prices (0.2%) vs street (0.1%)
Sweden unemployment rate 4.3% as expected
Norway consumer prices 2.0% vs street 1.8%
Greece unemployment rate 25.2% vs street 24.8%
Upcoming significant announcements include:
8:30 am AEST NZ Business PMI previous 53.5
8:45 am AEST NZ food prices street 0.6%
TBA China new yuan loans street 850.0B
7:00 am BST Germany consumer prices street 0.2%
8:00 am BST Spain consumer prices street (0.4%)
9:00 am BST Italy industrial production street 0.9%
8:30 am BST Sweden unemployment rate street 6.8%
8:30 am BST Sweden GDP street 3.0%
9:30 am BST UK construction output street 0.9%
8:30 am EDT US producer prices street (0.9%)
8:30 am EDT US PPI ex food and energy street 0.7%
10:00 am EDT US consumer sentiment street 91.1
10:00 am EDT US 1-yr inflation estimate previous 2.8%
1:00 pm EDT US Baker Hughes drill rig count previous 864