There’s so much going on across world markets creating trading opportunites today that I found it really hard to narrow down to a single headline. So today, I’m going to make a few short comments on a wide variety of topics. Crude oil is rallying again today with Brent and WTI both up about 2% and trading above $60.00 and $65.00 respectively. We could see more action in oil mid-morning when US storage comes out which could confirm the advance or spark a reversal. Both CAD and NOK continue to track crude oil higher today. JPY has staged a major turnaround rally today after Bank of Japan Governor Kuroda indicated he sees the Yen as very weak in trade weighted terms and that its unlikely to weaken further in real terms. Chinese indices sold off overnight after the MSCI announced that while it still intends to include China shares in global indices, it does not plan to do so until it can resolve access to markets issues with the Chinese government. The PBOC announcing cuts to its 2015 forecasts target doesn’t seem to have helped either even though it suggests the central bank may be preparing to cut interest rates and/or reserve requirements again. CNY has been steady even though this suggests that the country’s drive to have CNY named a reserve currency by the IMF may also take longer that some have hoped. NZD has also been among the top performing majors overnight indicating that speculation the RBNZ could cut interest rates at today’s meeting continues to fade due to rising property prices and concerns a rate cut could spark a housing bubble. USD continues to weaken sparking rallies for many commodities and currencies. Gold has been taking advantage today posting a gain of over $10.00 today. Energy and grain commodity groups are also trading higher, while US indices appear set to start out higher for the first time this week. European markets are sending mixed signals. Treasury yields are rising across the continent with Greece back above 11% and Germany moving back above 1%. This action, combined with EUR underperforming pretty much everything except USD suggests growing concerns about risk in the Eurozone, particulary surrounding Greece. On the other hand, European indices are rebounding today suggesting a more optimistic view among traders. In the absence of other major news, Greece many continue to roil European trading. There is a ton of news scheduled over the next 24 hours, in addition to what I have mentioned above, tonight brings Australia employment and China retail sales, while tomorrow morning brings US retail sales which could kick off another round of Fed speculation trading. Corporate News Hudson’s Bay Company ($0.18) vs street ($0.05), same store sales growth up 11.7% (wow!!) led by Saks off 5th up 10.3%, and department stores up 5.3% Dollarama $0.50 vs street $0.47, same store sales up 6.9% Economic News Economic reports released overnight and this morning include: People’ s Bank of China forecasts GDP cut to 7.0% from 7.1% Consumer prices cut to 1.4% from 2.2% Retail sales cut to 10.7% from 12.2% Exports cut to 2.5% from 6.9% Imports cut to (4.2%) from 5.1% France industrial production (0.1%) vs street 1.0% Sweden industrial production 1.5% vs street (2.0%) Norway consumer prices 2.1% as expected Italy industrial production 0.1% vs street 1.0% UK industrial production 1.2% vs street 0.6% Greece consumer prices (2.1%) vs street (1.0%) Japan machine orders 3.0% vs street (1.4%) Japan producer prices (2.1%) vs street (2.2%) China new Yuan loans street 850B Upcoming significant announcements include: 3:00 pm BST UK NIESR GDP estimate previous 0.4% 10:30 am EDT US crude oil inventories street (1.4 mmbbls) 9:00 am NZST Thu RBNZ interest rate decision street 3.50% no change expected 5:00 pm EDT Wed 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.
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