With so many potentially big developments bunched into a 36-hour period later this week, traders have been moving capital into defensive havens. Gold and the yen have spiked upward overnight, with gold running up to $1,290 and USD/JPY breaking under 110.00.
Between Wednesday and Thursday evening a ton of news is due that could potentially move the markets. Wednesday night brings China trade figures, while Thursday brings a European Central Bank meeting and potential changes in monetary policy guidance. Also on Thursday, former FBI director James Comey provides his testimony to Congress.
The hard-fought UK election campaign comes to a head with the vote on Thursday and results due Friday morning. In Canada, a Bank of Canada review of financial services is also due. Whether this rally is sustainable or not depends on whether any negative surprises come out of these developments.
US index futures and the FTSE are trading flat to down moderately, with the Dax falling 0.75% on its return to trading in what could be the calm before the storm.
UK election polls have been all over the place, varying between small and large Conservative leads. In Europe, it appears Italy's political parties have come up with a plan to enable an election to be held later this year, rather than dragging out uncertainty to spring 2018.
There have been no major corporate announcements this morning.
Significant announcements released overnight include:
Japan real cash earnings: previous (0.8%)
NZ ANZ commodity prices: previous (0.2%)
RBA interest rate: 1.50% no change expected
UK same store sales: street (0.2%) vs previous 5.6%
Eurozone retail sales: street 2.1%
Upcoming significant economic announcements include:
10am EDT Canada Ievy PMI: previous 62.4
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