Risk aversion has again been the focus on Wednesday, with stocks remaining heavy and the dollar also under some pressure, particularly against the Yen, as traders remain concerned that Donald Trump does not have the ability to fulfill his election promises and push through his policies, including tax cuts and infrastructure spending. At the end of the session though the stock indices are trading fairly close to the previous day’s closing levels, as is the dollar against most pairs, with the exception of the safe haven assets, which remain in demand.
Thursday kicks off with the RBNZ Interest Rate Decision (no change – as expected) which is about the only Asian interest, although Europe will be busier with the release of the UK February Retail Sales (exp 0.4% mm, 2.6% yy), EU Consumer Confidence (Mar), the German Consumer Confidence Survey (Apr), the EU Economic Bulletin and the Targeted Long Term Refinancing Operation (LTRO) figures. The US session will also be active, beginning with a speech from Janet Yellen, which will be the main focus of the day if she gives any hint of future policy at the Federal Reserve System Community Development Research Conference. Also from the US, we get the Kansas Fed Mfg Activity (March), New Home Sales (Feb), Jobless Claims and a speech from the Fed’s Kashkari. Also note, the other event that will be closely watched on Thursday will be the vote on the repeal of Obamacare. A defeat could weigh on US stocks and another selloff in the dollar,
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|INDICES / COMMODITIES|
|ASX SPI: 5689|
|OIL (WTI): 48.09|