Major stock markets around the world are trading flat to slightly lower to start the week. Asia Pacific trading saw mixed action with the Hang Seng rising while mainland markets and the Nikkei
fell as both China and Japan delivered soft industrial production reports.
In Australia both the S&P/ASX and AUD rose ahead of a leadership vote among Liberal MP’s that has seen unpopular leader Abbott replaced by Malcolm Turnbull, tasked with turning around the centre-right government’s sagging popularity.
European and US indices are trading slightly lower as the street remains focused on Thursday’s FOMC interest rate decision where an increase looks possible. Tomorrow’s US retail sales and Wednesday’s US consumer price inflation provide the opening acts.
In commodities today, Brent crude is outpacing WTI to the downside and because of this, NOK has been underperforming its peers, especially CAD which has been able to stand its ground against USD. Gold and continental currencies are trading moderately lower. JPY is up slightly ahead of tonight’s Bank of Japan meeting.
We could see some action in European trading on the latest QE update but most of today’s action is likely to be focused around pre-Fed preparations.
There are no major corporate announcements this morning
Significant announcements released overnight include:
Australia PM vote Malcolm Turnbull defeated Tony Abbott 54-44 in a Liberal leadership challenge to take over the party and top job.
Japan industrial production 0.0% vs previous 0.2%
China retail sales 10.5% vs street 10.4%
China industrial production 6.1% vs street 6.5%
China fixed assets 10.9% vs street 11.2%
Upcoming significant announcements include:
9:45 am EDT ECB weekly QE purchase update
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