USD and stocks slide to start the week
Stock markets continue to drift lower but at a slower pace than they did on Friday. There wasn't’ a lot of market moving news out of the G7 meeting over the weekend.
In terms of economic news, strong Japanese GDP helped the Yen to at least stop underperforming. Strong Chinese trade numbers helped the Hang Seng to rally.
Germany racking up another big trade surplus which didn’t do much for stocks but EUR has been picking up having survived intact for another weekend.
Strong Canada housing starts hasn’t helped the loonie on a day when oil is lower and the Dollar is correcting a bit after Friday’s stellar performance. Overall, the jump in housing is a long term positive as it confirms the strong economy seen in Friday’s jobs report and means another rate cut remains unlikely.
Overall, traders appear to be digesting all of last week’s big developments and waiting to see what may come of Greece. The focus otherwise this week remains on Asia Pacific markets with more data due from China, Australia and New Zealand plus an RBNZ meeting and US retail sales over the course of this week.
There have been no major corporate announcements so far this morning.
Economic reports released overnight and this morning include:
Japan GDP 3.9% vs street 2.7%
China trade balance $59.5B vs street $44.9B
China exports (2.8%) vs street (4.0%)
China imports (18.1%) vs street (9.6%)
Canada housing starts 201K vs street 185K
Germany industrial production 1.4% vs street 0.9%
Germany trade balance €22.1B vs street €19.4B
Upcoming significant announcements include:
4:15 pm EDT Bank of Canada Wilkins speaking
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