t's amazing what a difference a year makes. Last August Chinese markets went into free fall sending global markets into six months of turmoil. This summer, mainland China markets have been helping to support a rally. Overnight Shenzen gained 3.0% and Shanghai rose 2.5%.
China stocks were boosted by speculation that last week's soft China industrial production and retail sales could push the government into more fiscal stimulus and also that a big upgrade to Hong Kong-Shenzen trading links could be on the way. Recall last year improved links between Hong Kong and Shanghai sent stocks soaring then crashing.
Stocks in other parts of the world continue to consolidate recent gains. Earlier today the Dax moved back into positive territory for the year, that lags the gains of 6% for the Dow, 10% for the FTSE
and 13% for the S&P/TSX so far in 2016. For today, the Dax, FTSE and US index futures are all up 0.1% to 0.3%.
WTI crude oil is up 0.4% as it approaches the midpoint of its $40-$50 trading range. Earlier today Russia’s energy minister indicated the country is willing to talk to Saudi Arabia and other countries about stabilizing the market but that balance may not be reached until sometime in 2017. CAD is attracting support off this with USDCAD trading below $1.3000 and it may also help energy stocks.
Earnings season continues to wind down and economic data has been light so today's US Empire manufacturing report could attract attention from traders As the week progresses focus may turn to the UK where a s series of key indicators may shed light on the initial impact on the UK economy from the Brexit vote. Heading into the data GBPUSD
is sitting below $1.3000 but above its July low.
There have been no major corporate announcements so far today.
China industrial production 6.0% vs street 6.2%
Upcoming significant economic announcements include:
8:30 am EDT US retail sales street 0.4% vs previous 0.6%
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.
CMC Markets er en ‘execution-only service’ leverandør. Dette materialet (uansett om det uttaler seg om meninger eller ikke) er kun til generell informasjon, og tar ikke hensyn til dine personlige forhold eller mål. Ingenting i dette materialet er (eller bør anses å være) økonomiske, investeringer eller andre råd som avhengighet bør plasseres på. Ingen mening gitt i materialet utgjør en anbefaling fra CMC Markets eller forfatteren om at en bestemt investering, sikkerhet, transaksjon eller investeringsstrategi. Denne informasjonen er ikke utarbeidet i samsvar med regelverket for investeringsanalyser. Selv om vi ikke uttrykkelig er forhindret fra å opptre før vi har gitt dette innholdet, prøver vi ikke å dra nytte av det før det blir formidlet.