tock markets are mixed to finish the week. US index futures are up 0.3% continuing their post Fed rally while European indices have faded into the weekend with the FTSE and Dax
down marginally. Overnight economic news was generally positive with flash manufacturing PMI reports for Japan, Germany and France all improving with the US report due later this morning.
CAD and Canadian stocks have the potential to be particularly active today with market moving news and speculation coming from two directions.
First, the state of the Canadian economy could influence trading early. Unlike most other resource country central banks, the Bank of Canada has not cut interest rates this year in response to lower commodity prices, its last cut having come in July 2015. Governor Poloz prefers to let CAD to the heavy lifting instead. The Bank of Canada has been hoping the economy would bounce back from the spring forest fire disruptions in the summer but indicated at its last meeting that July was not as strong as hoped. Friday’s Canadian retail sales and inflation figures may give a better idea of how the Canadian economy is doing and whether the Bank of Canada may come under pressure to cut rates later this year or not.
We also could see action in oil prices impact trading in CAD and energy stocks well into next week. Speculation continues to swirl around side discussions between OPEC and Russia at a big energy conference in Algeria this weekend.
Iran and Saudi Arabia have been working to iron over their differences which sunk the Qatar meeting in April. Apparently the Saudis have agreed to cut production in exchange for Iran freezing production. What to do about Libya and Nigeria restoring depressed production may also be an issue. Apparently OPEC is ready to call a special meeting to ratify any agreement that may come out of these informal talks.
Today, WTI is up 0.1% while Brent is up 0.8% as traders position ahead of the meeting. Expectations of success have grown in recent days even though the last attempt at a deal to end the market share price war ended in failure. Results of the meeting could spark significant action in oil to start next week. For today the main oil related news is US drill activity this afternoon.
There have been no major corporate announcements this morning.
Japan flash manufacturing PMI 50.3 vs previous 49.5
France flash manufacturing PMI 49.5 vs street 48.5
France flash service PMI 54.1 vs street 52.0
Germany flash manufacturing PMI 54.3 vs street 53.1
Germany flash service PMI 50.6 vs street 52.1
France GDP 1.3% vs street 1.4%
Singapore consumer prices (0.3%) vs street (0.4%)
Singapore core CPI 1.0% vs street 1.1%
Upcoming significant economic announcements include:
8:30 am EDT Canada retail sales street 0.1% vs previous (0.1%)
8:30 am EDT Canada retail ex auto street 0.5% vs previous (0.8%)
8:30 am EDT Canada consumer prices street 0.1%
8:30 am EDT Canada core CPI street 1.4%
9:45 am EDT US Markit flash manufacturing PMI street 52.0
12:30 pm EDT FOMC Kaplan speaking
1:00 pm EDT US Baker Hughes drill rig count previous 506
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.
CMC Markets erbjuder sin tjänst som ”execution only”. Detta material (antingen uttryckt eller inte) är endast för allmän information och tar inte hänsyn till dina personliga omständigheter eller mål. Ingenting i detta material är (eller bör anses vara) finansiella, investeringar eller andra råd som beroende bör läggas på. Inget yttrande i materialet utgör en rekommendation från CMC Markets eller författaren om en viss investering, säkerhet, transaktion eller investeringsstrategi. Detta innehåll har inte skapats i enlighet med de regler som finns för oberoende investeringsrådgivning. Även om vi inte uttryckligen hindras från att handla innan vi har tillhandhållit detta innehåll försöker vi inte dra nytta av det innan det sprids.