US markets have made back all of Friday’s losses and then some starting off the week with a big rally that sent the S&P to a new all-time high and the Dow up nearly 200 points at one point in the day. European markets have been trading higher as well after getting a boost from better than expected Germany IFO business survey results, sending positive momentum into today’s Asia Pacific sessions. It was otherwise a relatively quiet day to start the week for news. US flash service PMI came in below expectations but it’s unlikely this did much to help markets as the Fed appears to be blaming recent weak numbers on the weather and looks unlikely to change course on tapering for a while. Indices appear to be benefitting from capital inflows into retirement accounts ahead of tax deadlines for contributions being put to work in the markets and offsetting tapering for now. Gold and silver have had another good day today and could be benefitting from some haven flows with China markets soft lately, particularly CNY, and recent political turmoil in the Ukraine and Venezuela. Overall attitudes toward the global economy still appear positive as the resource dollars (AUD, NZD, CAD) plus NOK and SEK have been outperforming today. One market that has been totally slammed today is natural gas. Having rallied last week on anticipation of cold temperatures, the return of the Polar Vortex has sparked a big round of profit-taking as traders start to look ahead to the end of heating season in a few weeks. As temperatures bounce around, natural gas may remain volatile in both directions in the near term. As one of the few indicators out this month due to the New Year holiday, Chinese leading indicators may attract some attention from traders. NZ inflation expectations may attract attention from traders looking for an indication of how much pressure the RBNZ is under to raise interest rates soon. Tomorrow German GDP could attract attention. The bulk of the key releases this week are on Friday including Japan’s monthly basket of key indicators, plus North American GDP reports. Corporate News There have been no major aftermarket announcements at the time of writing. Economic News Significant announcements released overnight include: US flash service PMI 52.7 vs previous 56.7 Germany IFO bus climate 111.3 vs street 110.5 Germany IFO current assessment 114.4 vs street 112.8 Germany IFO expectations 108.3 vs street 108.1 Eurozone consumer prices 0.8% vs street 0.7% Upcoming significant announcements include: 1:00 pm AEDT NZ inflation expectation previous 2.3% 1:00 pm AEDT China leading indicator 7:00 am GMT Germany GDP street 1.4% 9:00 am GMT Italy retail sales street 0.2% 9:30 am GMT South Africa GDP street 2.1% vs previous 1.8% 9:00 am EDT US house price index street 0.3% 10:00 am EDT US consumer confidence street 80.0 10:00 am EDT US Richmond Fed street 5 vs previous 12


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