Stock markets overseas have been rallying overnight and into this morning. The FTSE is leading the pack rallying 1.6% while the Dax is up 0.5% on its return to trading and the Nikkei rose 0.8%. US index futures are up 0.1%. Crude oil contracts are down 0.3% in normal trading corrections with Brent still above$50 and WTI still above $48.
UK markets remain in focus today. Cable has broken $1.2800 to a new 30-year low following reports that the UK government may not seek special protection for The City (UK financial sector) in Brexit talks. Meanwhile the positive benefits of the lower Pound continue to shine through as UK Construction PMI moved back above 50 into expansion territory and beat the street.
There hasn't been any news related to Deutsche Bank's financial woes or the potential size of its Big US fine. Gold continues to trend lower this morning, however, indicating that the street does not expect either Brexit or European bank capital to spiral into a global financial crisis.
USD is trading higher today relative to most majors including EUR, JPY, GBP and CAD. Yesterday's US economic reports were mixed with manufacturing PMI beating the street and construction spending staging a surprise drop. The next big data points for the US are ADP payrolls tomorrow and nonfarm payrolls Friday.
The Vice Presidential debate being held tonight is usually a snoozer but could be somewhat significant for trading in the Mexican Peso today in light of the close contest and US-Mexican relations a core campaign wedge issue. North of the border the Blue Jays do or die playoff game tonight is likely and deservedly going to attract far more attention.
There have been no major corporate announcements so far today.
UK construction PMI 52.3 vs street 49.0 vs previous 49.2
Spain unemployment change 22K vs street 23K
India RBI repurchase rate surprise 0.25% cut to 6.25% no change was widely expected
Australia RBA interest rate 1.50% no change as expected
NZ QV house prices 14.3% vs previous 14.6%
Australia building approvals 10.1% vs street 5.1%
Australia commodity index 3.1% vs previous 0.8%
Upcoming significant economic announcements include:
8:05 am EDT FOMC Lacker speaking
9:45 am EDT US ISM New York previous 47.5
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