European stocks slumped last night as relations between Italy and the EU hit a debt friction point. US stocks hit three-month lows ahead of GDP and inflation data due tonight. Fears that the numbers will confirm a slowing US economy rattled investors and drove bond prices up. Major forex pairs are steady, but commodity currencies are under pressure.
China will release PMI indices tomorrow. The outlook for global growth, and any drag from the festering trade dispute, remain key issues for markets. The data over the next twenty-four hours has potential to either confirm or dispel the gloom. Industrial commodities continue to give mixed signals, with crude oil and iron ore on firmer ground but copper extending the slide since mid-April to 11%.
The impending evidence may see a calmer Asia Pacific trading session today. Futures markets are pointing to small losses at the opening. However given the pressure on regional bourses over the last few sessions a bounce is possible.
The Australian share market may respond to local positives rather than global negatives. As China targets rare earth exports to the US, locally listed Lynas Corporation may extend its four day, 25% rally. Some investors may form the view that Australian companies are well-placed to fill any trade gaps opened in the China/US relationship.
CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.