The impact of Friday’s big US employment surprise has continued to work its way through global markets. Indices in Hong Kong and Japan stages a catch up rally to start the week with thinning protests in Hong Kong also helping to boost the Hang Seng, The Australian market, however, did not partake, likely as it had rallied last week ahead of the news.
In Europe today, the Dax
is staging a catch-up rally on its return to trading. It has shrugged off some early dragging from poor German factory orders but is now up over 1% on the day, while the IBEX is up 1.4% and other major bourses are up at a more moderate pace.
US indices are also trading moderately higher with the Dow and NASDAQ still above 17,000 and 4,000 respectively. The broader S&P and Russell 2000 are also trading higher but remain short of 1,990 and 1,110 respectively.
USD, however, has already started to fade, dropping back in a normal correction of Friday’s big gains. With US news flow a lot lighter this week, there is nothing to propel the dollar further, which means we may have seen a buying climax last week and the start of a correction this week.
The US dollar index is down 0.3% with SEK staging the biggest bounce followed by AUD which is climbing ahead of tonight’s RBA meeting. GBP which had fallen the least among majors on Friday is unsurprisingly up the least today. WTI Crude is back above $90.00, while gold is bouncing back a bit bur remains stuck below $1,200.
CAD is running in the middle of the pack so far today but could be active later this morning when Canadian PMI results are released. The loonie could attract attention through the week as traders look ahead for Friday’s Canadian employment report.
Hewlett Packard announced plans to split itself into two companies, a personal computer and printer company and a business hardware, software and service company.
Economic reports released overnight and this morning include:
Germany factory orders (5.7%) vs street (2.5%)
Germany construction PMI 50.0 vs previous 47.7
Germany retail PMI 47.1 vs previous 49.4
NZ house prices 6.4% vs previous 6.9%
Australia inflation 2/2% vs previous 2.5%
Economic reports due later today include:
10:00 am EDT Canada Ivey PMI street 52.5 vs previous 50.9