Traders have continued to pull out of defensive havens like gold and JPY, sending money back into US markets sending both stocks and the dollar significantly higher at the expense of Europe where major indices, EUR and GBP all retreated. US markets got a big boost from stronger than expected durable goods orders report, particularly the ex-transport figure that excludes the distortions of large aircraft orders. After declines in seven out of eight months between October of 2014 and May of 2015, orders were decisively positive for a second month in a row and well above street expectations. Strong orders indicates better economic conditions than recent market action has suggested, and lit a fire under both USD and stocks today. Despite dovish comments out of New York Fed President Dudley, speculation on a September interest rate hike clearly came back on today heading into the Fed’s Jackson Hole, Wyoming conference which starts tomorrow with the potentially biggest speech from FOMC Vice-Chair Fischer on Saturday. USD strength had a big impact on trading in commodities today. Metals like silver and copper fell sharply on a combination of the dollar rise and poor China demand prospects. Crude oil, however has stabilized with WTI and Brent getting additional support from better than expected US API and DOE inventory reports this week. gasoline, on the other hand has been slammed falling 5% on a surprise inventory increase just as summer driving season winds down. Resource currencies struggled through much of the day with commodities falling although AUD and NZD have regained their footing a bit in the last few hours along with NOK and CAD. There isn’t very much in the way of economic or corporate news today for Asia Pacific countries so the spotlight is likely to remain firmly on Chinese stock markets. Considering that yesterday’s interest rate, stamp tax and reserve requirement cuts plus a hike in margin rates weren’t enough to boost stocks, traders continue to wonder what it’s going to take? Japanese markets may remain active ahead of tomorrow’s monthly data basket with the Nikkei on the rebound and JPY in retreat overnight. US stocks closed strong on the day making much of their gains in the last two hours of trading. This can be seen as a positive sign as it indicates US traders have become increasingly willing to hold positions overnight. This suggests a shift from caution to optimism about today’s Asia Pacific trading session. Corporate News There have been no major corporate announcements after the US close today. Economic News Significant announcements released overnight include: US durable goods orders 2.0% vs street (0.4%) US durables ex transport 0.6% vs street 0.3% US DOE crude oil inventories (5.4 mmbbls) vs street 2.0 mmbbls US DOE Gasoline inventories 1.6 mmbbls vs street (0.9 mmbbls) Upcoming significant announcements include: 11:30 am AEST Australia Q2 private capex street (2.5%) vs previous (4.4%) 7:00 am BST UK Nationwide house prices street 3.1% 8:00 am BST Spain Q2 GDP update street 3.1% 8:30 am EDT US Q2 GDP update street 3.2% vs previous 2.3% 8:30 am EDT US Q2 personal consumption street 3.1% 8:30 am EDT US Q2 core PCE inflation street 1.8% 8:30 am EDT US jobless claims street 275K 10:00 am EDT US pending home sales street 8.3% 10:30 am EDT US natural gas street 61 BCF 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.