The nervousness among traders to kick off the week has continued right through today’s European and North American trading sessions. The breakdown in negotiations between Greece and its lenders and talk of implementing capital controls took the spotlight, particularly on a day without else to focus on, while US Empire manufacturing and industrial production figures were below expectations. With the potential for Greece leaving the Eurozone growing and uncertainty over what that could mean for the long term prospects of the currency union it comes as no surprise that European markets outstripped their North American counterparts to the downside. The Dax fell 1.6% while the Dow fell only 0.6%, Brent crude oil fell 1.0% while WTI crude oil fell 0.5% and consequently NOK underperformed CAD. EUR and CHF also fell on the day relative to other majors. All things considered though the street still doesn’t appear to be in a panic about Greece. Gold only went up $5.00 today and remains well short of $1,200 let alone previous highs. Similarly, Greek treasuries touched 12.00% then dropped back, still low relative to its 2012 peak just short of 30%. It would seem that traders have been talking about a possible Greek default for so long that it’s just not a surprise anymore. Asia Pacific currencies have been among the top performers today. JPY may be attracting some safe haven inflows but AUD and NZD have also been near the top of the heap. AUD could be active again today around the RBA minutes report. Although it’s been pretty clear that the central bank has gone to neutral on interest rates how aggressively members tried to talk down the dollar could spark some activity. Corporate News There have been no major announcements following the US market close today. Economic News Significant announcements released overnight include: US Empire Manufacturing (1.9) vs street 6.0 US industrial production (0.2%) vs street 0.2% US manufacturing production (0.2%) vs street 0.3% US NAHB housing market index 59 vs street 56 Canada manufacturing sales (2.1%) vs street (0.5%) Eurozone trade balance €24.9B vs street €22.5B UK Rightmove house prices 4.5% vs previous 2.5% Sweden unemployment rate 8.0% vs previous 7.9% Upcoming significant announcements include: 11:30 am AEST Australia RBA meeting minutes 7:00 am BST Germany consumer prices street 0.7% 9:00 am BST Norway trade balance previous NOK 1.2B 10:00 am BST Germany ZEW current street 63.0 10:00 am BST Germany ZEW expectations street 37.3 10:00 am BST Eurozone ZEW expectations previous 61.2 9:30 am BST UK consumer prices street 1.0% 9:30 am BST UK core CPI street 1.0% 9:30 am BST UK retail prices street 1.1% 9:30 am BST UK producer input prices street (11.3%) 9:30 am BST UK producer output prices street (1.6%) 9:30 am BST UK ONS house prices previous 9.6% 8:30 am EDT US housing starts street 1,090K 8:30 am EDT US building permits street 1,100K CMC Markets is an execution only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
Grexit fears drag Europe markets down more than US; RBA minutes today
01:00, 15 June 2015