It was all about the Euro early in the session when the statement came through that German politics was in turmoil after a walk out by one of the prospective coalition partners. A rebound followed in early European trade once the President asked all parties to reconsider their position and as markets perceived that the economy won’t be hurt by the current political uncertainty. The bounce did not last long and the Euro is now back down towards its lows. All other currencies traded around it, with most ending up pretty much unchanged, with the exception that both the Yen and the Chf are slightly weaker as risk sentiment improved due to the rebound in the stock markets. The metals also fell as risk assets were dumped, while WTI remains choppy but rangebound.
Politics will remain in the spotlight, but Tuesday will be mostly quiet in terms of data, although the RBA Minutes will be the focus in Asia, but with little excitement expected there. The RBA Governor, Lowe will then be speaking in the evening and may create some waves in Europe. The EU Financial Stability Report and the UK Inflation Report Hearing and Public Sector Net Borrowing Requirements will be the other highlights in Europe, while from the US the main event will be a speech from Janet Yellen, although the Existing Home Sales are also due. Kiwi traders should look out for the Global Dairy Trade Index, while oil traders will look to the API Weekly Crude Oil Stock Inventory for guidance.
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|ASX SPI: 5981|