Markets have been generally fairly steady on Tuesday although the US$ is mildly lower as traders focused on the US/China trade war and the growing possibility of a Fed rate cut in the coming months. Of note in the FX markets, Sterling has rallied on stronger than expected wage growth, while the BoE Deputy Governor Ben Broadbent noted that interest rate might have to rise more quickly than market expected. Elsewhere, stocks ended the day flat as did the metals, while oil is a little lower.
Wednesday will be dominated by inflation data and by central bank speakers from the RBA and the ECB. In terms of inflation, China will come first and then will be followed later in the day by the US data for May; China: CPI, exp 0.0%mm, 2.7%yy; PPI, exp 0.6%yy. US; CPI, exp 0.1%mm, 1.9%yy. Other data will include the NZ Visitor Arrivals and Electronic Card Retail Sales, and the Australian WBC Consumer Confidence but with little else to come from either the EU or the US.
Economic data highlights will include:
Wed: NZ Visitor Arrivals, Electronic Card Retail Sales, Japan Machine Orders, Australian WBC Consumer Confidence, RBA’s Kent/Ellis Speeches, China CPI/PPI, New Loans, ECB’s Draghi/De Guindos/Coeure Speeches, US CPI, Monthly Budget Statement.
Market moves, in brief:
FX: DXY 96.71 (-0.06%)
Bonds: US10Y; 2.145% (-0.33%), German 10Y; -0.232% (-6.33%), UK 10Y; 0.85% (+1.43%), Australian 10Y; 1.47% (-0.85%), NZ 10Y; 1.74% (-0.29 %), China 10Y; 3.24% (-0.14%)
Stock Indices: DJI; -0.05%, S+P; -0.03%, NASDAQ; -0.01%, EUStoxx50; +0.43%, FTSE100; +0.31%, Shanghai Composite; +2.58%,
Metals: Gold $1327 oz (0.00%), Silver $14.75 oz (+0.30%), Copper $2.6715 lb (+0.38%), Iron Ore $102.76 per tonne (NYMEX) (3.50%),
Oil: WTI $ 52.98 pb (-0.73%)
|INDICES / COMMODITIES|