S indices started the day soft but gained in strength through the day to post moderate advances. A disappointing Empire manufacturing report was offset by improved housing market data. Overall, indices appear to have gone into consolidation mode above recent lows but still below the levels needed to call off their near-term downtrends.
This momentum does provide a sense of cautious optimism for Asia Pacific trading. There’s no major news scheduled but as we have seen, there is always the potential for some kind of surprise move from China with rumours suggesting a possible cut to bank reserve requirements.
Gold held steady through the day but commodity markets remained weak particularly gasoline, natural gas and copper, while oil fell at a smaller pace after clawing back most of its early losses. This action suggests concerns about China’s economy and resource demand outlook may have subsided for now but have not gone away completely.
Tomorrow morning brings UK inflation figures which could spark another flurry of trading driven be speculation on when the Bank of England may start raising interest rates, which could keep GBP pairs active over the next 24 hours.
There have been no major announcements after the US close today.
Significant announcements released overnight include:
US Empire Manufacturing (14.90) vs street 4.50
US NAHB housing market index 61 vs previous 60
UK Rightmove house prices 6.4% vs previous 5.1%
Norway trade balance NOK 21.9B vs street NOK 23.1B
Eurozone trade balance €21.9B vs street €23.1B
Upcoming significant announcements include:
11:30 am AEST China property prices
9:30 am BST UK consumer prices street 0.0%
9:30 am BST UK core CPI street 0.9%
9:30 am BST UK retail prices street 1.0%
9:30 am BST UK producer input prices street (12.7%)
9:30 am BST UK producer output prices street (1.5%)
9:30 am BST UK ONS house prices previous 5.7%
1:00 pm BST Poland employment street 0.9%
1:00 pm BST Poland average gross wages street 3.5% vs previous 2.5%
8:30 am EDT US housing starts street 1,180K
8:30 am EDT US building permits street 1,225K
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