China taking a day off from its stock market crisis lifted the lid off of European and US indices today as major indices on both sides of the Atlantic posted gains in the 0.75% to 1.50% range for the most part. Better than expected earnings from Ford, UPS, Merck and Pfizer also helped to shore up support. Commodities also rebounded in a big way today particularly copper which surged 2.5% while WTI crude posted a 1.2% gain. Freeport McMoRan rebounded for a 9.5% gain on the copper bounce. A 1.2% gain for natural gas helped Chesapeake to rally for 6.8% and EOG resources to jump 5.8%. It was an interesting day for trading in USD, which along with gold, appears to have gone into a holding pattern ahead of tomorrow’s FOMC meeting. The greenback spent the day sitting in the eye of the storm with all the other major currencies circling around it. The commodity rebound propelled resource currencies to the top of the performance chart with CAD, NZD, ZAR and AUD leading the charge. GBP also rose slightly as a strong UK GDP report stoked speculation UK rate liftoff could come sooner than next summer. On the other hand, SEK retreated on a soft Swedish retail sales report. EUR fell back as well in normal backing and filling after Monday’s breakout. Today’s Asia Pacific trading could be influenced mainly by what happens next for China? Could government intervention help to stabilize markets or could the bears gain the upper hand once again? Commodities may also be active as traders try to figure out what potential impact China’s stock market volatility could have on its economy and demand for resources. The other main undercurrent running through today’s trading is speculation on what could come out of tomorrow’s FOMC announcement. A July rate hike looks unlikely, but a September liftoff appears to be well on the way to being priced in to currency markets so any hints that come out of the statement could have a significant impact on trading. Corporate News Twitter and Citrix are scheduled to report earnings after the US close today. Economic News Significant announcements released overnight include: US Flash Service PMI 55.2 vs street 55.0 US Consumer Confidence 90.9 vs street 100.0 US Richmond Fed 13 vs street 7 Canada industrial prices 0.5% vs street 0.3% Canada raw material prices 0.0% vs street 1.0% UK GDP over quarter 0.7% as expected UK GDP over year 2.6% as expected Sweden retail sales 3.8% vs street 4.0% Upcoming significant announcements include: 9:50 am AEST Japan retail sales street 1.1% 8:00 am BST Spain retail sales street 3.6% 8:00 am BST Sweden consumer conf street 98.9 9:00 am BST Norway unemployment rate street 4.3% 11:00 am BST UK CBI sales street 29 10:00 am EDT US pending home sales street 11.1% 10:30 am EDT US DOE crude oil inventories street 0.85 mmbbls 2:00 pm EDT US FOMC interest rate 0.25% no change expected 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.