It was a mixed day for trading. Stock markets started the day off with a big selloff sparked by yesterday’s big drop in China exports and concerns about the health of the world economy. Stocks did manage to bounce back and reclaim much of their lost ground although US indices
still finished in the red.
The main factor behind the bounce appears to have been a technical correction in the US Dollar which had become overbought lately. Low US jobless claims kept the pressure on the Fed to raise rates once this year, echoed by Philadelphia Fed President Harker.
Based on this, today’s bonce for stocks may have been a temporary reprieve. Tomorrow brings US retail sales, an insight into the strength of the consumer economy. Earnings are due from three big US banks, JP Morgan, Citigroup and Wells Fargo which may offer insights into the health of the banking sector.
Inflation and retail sales dominate today’s Asia Pacific economic calendar which could attract attention to markets in China, Japan and Singapore.
There have been no major corporate announcements after the US close today.
Significant announcements released overnight include:
Canada new house prices 2.7% vs street 2.8%
Canada Teranet house prices 11.7% vs previous 11.4%
US jobless claims 246K vs street 253K
US DOE crude oil inventories 4.9 mmbbls vs street 2.0 mmbbls
US DOE distillates inventories (3.7 mmbbls) vs street (1.2 mmbbls)
US DOE gasoline inventories (1.0 mmbbls) vs street (1 3 mmbbls)
US natural gas storage 79 BCF vs street 88 BCF
Upcoming significant economic announcements include:
(Note: 11:30 am in Sydney/Melbourne is currently 1:30 pm in Auckland, 4:30 pm in Vancouver, 7:30 pm in Toronto/Montréal, 12:30 am in London and 8:30 am in Singapore)
10:50 am AEDT Japan producer prices street (3.2%)
12:30 pm AEDT China consumer prices street 1.6% vs previous 1.3%
12:30 pm AEDT China producer prices street (0.3%)
4:00 pm AEDT Singapore retail sales street 0.8%
4:00 pm AEDT Singapore retail ex auto street (2.1%)
9:30 am BST UK construction output street 1.2%
8:30 am EDT US retail sales street 0.6% vs previous (0.3%)
8:30 am EDT US retail ex auto street 0.5% vs previous (0.1%)
8:30 am EDT US producer prices street 0.6% vs previous 0.0%
8:30 am EDT US core PPI street 1.2%
10:00 am EDT US consumer sentiment street 91.8
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