A stronger European industrial outlook should see support for shares and select commodities in Asia Pacific trading today. Calm overnight trading in the light of holidays in Japan and the US may weigh on volumes. Intraday, the performance of the Shanghai composite could prevail over regional sentiments after yesterday’s dramatic sell down.
Despite modest US dollar weakness gold and bond markets were steady to lower. In contrast oil and copper rose, and iron ore put on its second daily 4% plus surge. The market action points to the influence of better than expected activity measures across the continent. In particular, a larger than forecast expansion in European manufacturing to multi-year highs drove the action.
The AGM season continues apace. The Myer leadership team’s response to the unwelcome Amazon spotlight will take centre stage. Traders will likely tune in to lithium miner Orocobre’s AGM for any outlook statements that could further squeeze short sellers in the stock. Despite massive buying back as the stock price doubled over the last three months, there remain around 20 million shares (or more than ten days’ worth of average turnover) to buy back.
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