Stock markets around the world have been relatively quiet again overnight with Japan closed for a holiday and earnings season winding down. The Dax is up 0.6% while the FTSE is down 0.3%. US index futures are up 0.3%.

Falling oil prices continue to provide a headwind to energy stocks and markets in general plus oil sensitive currencies like CAD. Hopes earlier this week for new talks among producers have been ‎dashed by surprise increases in US inventories and reports both Saudi Arabia and Iran continue to increase production. Adding to the worries of a continued oil supply glut, this morning the International Energy Agency indicated it expects oil demand growth to fall to 1.2 mmbbld in 2017 from 1.4 mmbbld this year.

Gold and other precious metals like silver and platinum have been holding on to yesterday's gains. Overnight the World Gold Council announced demand for the yellow metal in Q2 was up 15% over a year ago while overall supply increased 10%. Demand was driven by a 141% increase in investment buying while mine production was flay over year. This indicates the big rally in gold this year has fundamental support. Higher prices have dampened central bank and jewellery demand which could restrict further upside in the near term.

In currency markets the main action has been in NZD which went on a wild ride after the RBNZ announced a 0.25% rate cut as expected. The Kiwi Dollar surprisingly soared as some traders had been hoping for more but it fell back again as the central bank indicated the potential for additional cuts but at a slower pace than some had been looking for.

Today's economic calendar is relatively light with US jobless claims and Canada new house prices the main scheduled reports. Canadian insurers could be impacted by Sun Life’s disappointing earnings report overnight. 

Corporate News

Sun Life        $0.77 vs street $0.92, operating ROE 10.1% down from 16.5% a year ago

Economic News

NZ RBNZ interest rate        0.25% cut to 2.00% as expected

NZ food prices            (0.2%) vs previous 0.4%
Singapore GDP            2.1% vs street 2.2%

France consumer prices        0.2% as expected
Sweden consumer prices    1.1% vs street 0.8%
Sweden unemployment rate    3.9% vs previous 3.8%

Upcoming significant economic announcements include:

8:30 am EDT        US jobless claims        street 265K
8:30 am EDT        US import prices        street (4.3%)

8:30 am EDT        Canada new house prices    previous 2.7%

10:30 am EDT         US natural gas            street 27 BCF

CMC Markets is an execution only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.