Shares and industrial commodities are under pressure as markets head into a data packed week. Sellers returned to European and US exchanges on Friday night after a three-day rally that lifted the US SPX index more than 20%. Crude oil came under renewed pressure and bonds rallied on central bank support, but the US dollar fell in a sign that fear remains below peak levels.
Data release this week will provide evidence of the global impact of the virus containment measures. The week gets underway with German inflation numbers and gauges of housing activity in the UK and US tonight. PMI data from China, Europe and the US will be closely watched ahead of the release of non-farm payroll numbers on Friday. Consensus forecasts point to contraction in China manufacturing and services, and a loss of 100,000 jobs in the US.
Cryptocurrencies are also caught in the downdraft after trading higher last week. Bitcoin is down 11% this morning, although the All Crypto index is only down 9%. West Texas crude is trading just above $20 a barrel. A fall through this level may see selling accelerate and oil markets hit fresh 20-year lows
Asia Pacific stock markets could trade cautiously today ahead of the data. Futures indicate opening falls in Hong Kong and Japan, with modest gains for mainland China and Australia. Currency markets are steady this morning, although bonds are well bid. US futures dropped another 2% at the re-opening, adding to Friday’s 3% fall.
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