ommodities and resource currencies are on a roll to start the new trading week, coming out of a big weekend for conferences.
The China-led One Belt, One Road (or New Silk Road) conference on increasing land trade across Eurasia attracted a lot of attention in the media and was well received by traders. Hope the longer term prospects for trade may improve offset disappointing Chinese industrial production.
Base metals have been on the rise today with Copper gaining 0.8%, same as the Hang Seng. Resource currencies have also been in rally mode today with CAD, AUD, NZD and NOK all posting strong gains. The loonie has been getting a big boost from a 3% rally in oil prices boosted by reports OPEC and Saudi Arabia support extending production cuts well into 2018.
GBP and EUR have also been trading higher today. More weekend UK election polls showing the Conservatives with a commanding lead have provided more support for UK markets. News of a North Korean missile test didn't have any impact on gold and JPY which are mixed. Meanwhile at the G7 finance ministers conference, participants kicked discussion of trade issues off to the leaders’ summit later this month.
Today is the last day of the main part of earnings season. But the commodity price action suggests resource stocks could be most active which could put a tailwind behind Canadian and UK markets. US data centres around the Empire manufacturing report.
There have been no major corporate announcements this morning.
Significant announcements released overnight include:
China industrial production 6.5% vs street 7.0%
China retail sales 10.7% vs street 10.8%
Greece GDP (0.3%) vs previous (1.4%)
Upcoming significant economic announcements include:
8:30 am EDT US Empire manufacturing street 7.5
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