European stock markets played catch up to start their trading week with major indices across the continent and UK gaining 0.8%-1.8% for the most part. In line to slightly positive service PMI reports from the UK and across the continent also helped to boost spirits. Meanwhile US indices climbed for a second straight session and USD also bounced back today as traders focused more on the positive service PMI report than last week’s big nonfarm payrolls disappointment. Overall, the trend in stocks remains sideways as traders await the start of earnings season. Meanwhile USD continues to level off on the growing possibility that interest rate liftoff could be delayed from June toward the latter part of the year. With USD on the rebound, gold gave back some of yesterday’s gains but remains above $1,200. Continental currencies have fallen the most in response, particularly SEK and NOK in response to weak Swedish industrial production, and EUR which had benefitted from the recent USD correction. NOK’s performance appears particularly weak in relation to CAD which has received a cushion from another rally in oil prices. Both WTI and Brent were able to overcome early pressure to post 1-3% gains on the day. Comments from Saudi Arabia’s oil minister about being willing to stabilize the market if other countries (read non-OPEC producers) help out, but unless real progress is made, this looks like it could be another red herring for traders. Tomorrow brings US inventories which could spark more action. AUD has been the top performing currency overnight as it continues to benefit from the RBA maintaining interest rates and its rhetoric on the Dollar and not lowering the boom on the dollar again. NZD has weakened against the greenback but otherwise is running in the middle of the pack. The Bank of Japan’s latest monetary decision is due today. Ahead of the meeting JPY has been weakening and the Nikkei rising. The last round of data which included retail sales, Tankan and PMI was slightly soft while inflation remained above 2%. With inflation too high to increase QE and the economy too soft to reduce QE, another steady as she goes statement appears likely. Corporate News There have been no major developments following the US close today. Economic News Significant announcements released overnight include: Sweden industrial production (3.9%) vs street (1.5%) Sweden service production 3.1% vs street 2.7% Eurozone producer prices (2.8%) vs street (2.9%) Service PMI reports: Sweden 57.2 vs previous 56.7 Spain 57.3 vs previous 56.2 Italy 51.6 vs street 51.0 France 52.4 vs street 52.8 Germany 55.4 vs street 55.3 Eurozone 54.2 vs street 54.3 UK 58.9 vs street 57.0 Upcoming significant announcements include: 2:00 pm AEDT ish Japan monetary policy decision no changes to interest rate or QE expected 7:00 am BST Germany factory orders street 0.5% 10:00 am BST Eurozone retail sales street 2.8% 10:00 am EDT US crude oil inventories street 3.2 mmbbls 2:00 pm EDT US FOMC meeting minutes FOMC members Dudley and Powell speak in the morning. 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.