US stocks performed surprisingly well today with major indices shrugging off early losses to post 1-2% gains. Initial fears about the US economy sparked by Friday’s poor jobs data on earnings faded as Service PMI figures met or beat expectations. USD was soft again as traders’ expectations of interest rate liftoff continued to be pushed farther out. This took the lid off of commodity and currency markets enabling gold and EUR to make more headway. Crude oil had another big day, gaining 5-6% and regaining the $50.00 level. Bulls and bears continue to battle it out over direction with upward momentum coming from news that Saudi Arabia has raised its price to customers in Asia to reflect higher demand. Everyone that was off Monday returns to trading today. Australia may be particularly active with service PMI and retail sales heading into today’s RBA decision. The consensus estimate has called for no change but the statement could spark some activity if they leave the door open to interest rate cuts or say nothing. Also, comments from Governor Stevens could spark some action depending on whether he tries to talk the dollar down again or not. AUD is approaching the $0.7500 he previously said he would be comfortable with. Could he lower that again? Corporate News There have been no major developments following the US close today. Economic News Significant announcements released overnight include: US service PMI 59.2 vs street 58.6 US ISM non-manufacturing PMI 56.5 as expected Canada Ivey PMI 47.9 vs street 50.0 and previous 49.7 Upcoming significant announcements include: 11:30 am AEDT Australia retail sales street 0.4% 2:30 pm AEDT Australia interest rate 2.25% no change expected 3:30 pm AEDT India repurchase rate 7.50% no change expected 8:30 am BST Sweden industrial production street (1.5%) 8:30 am BST Sweden service production street 2.7% 10:00 am BST Eurozone producer prices street (2.9%) There are no major announcements for the US or Canada scheduled for Tuesday. Upcoming Service PMI reports: 9:30 am AEDT Australia previous 51.7 7:30 am BST Sweden previous 56.7 8:15 am BST Spain previous 56.2 8:45 am BST Italy street 51.0 8:50 am BST France street 52.8 8:55 am BST Germany street 55.3 9:00 am BST Eurozone street 54.3 9:30 am BST UK street 57.0