The main action in the markets kicking off the new week has been big selloffs in GBP and the FTSE
on poll results over the weekend that suggested the yes side has taken a 51%-49% ahead of next week’s vote. This news spooked traders who had been thinking the No side would run away with it.
The neck and neck race heading right to the wire has the potential to keep trading active and volatile in both directions across many UK related markets particularly the FTSE, Scottish Banks and GBP pairs over the next two weeks.
Overall, stock markets have started the week off on their back foot. This appears to be mainly backing and filling from Friday’s rallies as news flow from the Eurozone and North America has pretty much dried up for a bit.
It remains an active week for Asia Pacific news which saw a better than expected China trade surplus and a worse than expected Japan GDP. The latter boosted the Nikkei and weighed on JPY as it keeps the pressure on the Bank of Japan to do even more to stimulate the economy.
Although USD is consolidating today, it remains relatively strong against other major currencies and gold. Commodities also continue to retreat. Brent crude is flirting with the $100.00 barrier and dropped below it at one point. Corn is down 1.8% while wheat is down 0.9% with the prospects of a good US crop come into focus as concerns over supply disruptions in Ukraine fade.
Economic reports released overnight and this morning include:
China trade balance $49.8B vs street $40.0B
China exports 9.4% vs street 9.0%
China imports (2.4%) vs street 3.0%
Japan Q2 GDP (7.1%) vs previous (6.8%)
Japan GDP consumer spending (5.3%) vs street (5.0%)
Japan GDP business spending (5.1%) vs street (3.4%)
Germany trade balance €23.4B vs street €16.8B
UK house prices 9.7% vs street 10.0%
Economic reports due later today include:
There are no major announcements scheduled for North America today.