A series of positive data surprises in Europe and the US on Friday night were compounded by Sunday’s better than expected China PMIs. Oil and base metals traded higher, the US dollar strengthened and share markets rose as the numbers dropped. These releases should ensure a positive start to Asia Pacific trading today.

A number of key events could see higher market volatilities this week. High level China /US trade negotiations resume on Wednesday, the UK parliament continues to wrestle with Brexit, and data released throughout the week will speak to economic growth. Highlights include US durable goods and non-farm payrolls, China Caixin PMIs and German industrial production.

The Reserve Bank of Australia will make an announcement tomorrow on interest rates ahead of the release of the Federal budget. Many potential changes, as well as a likely budget surplus, have already hit the headlines, and market-moving surprises are unlikely. This week the official announcement of a Federal election date is widely expected. Local financial and healthcare stocks may respond as the major parties draw sharper distinctions between their intended policies.

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