The US$ is mixed again on Tuesday, while stocks march on to ever-higher levels (Netflix +10%) and WTI is back at trend highs. In the currency markets, while the Yen remains underpinned after the slightly more upbeat outlook on inflation from yesterday’s BoJ meeting, the Euro is steady – trading in a tight range, mostly below 1.2300 – but unable to make any progress following the positive ZEW, with traders taking a cautious stance ahead of tomorrow’s ECB Meeting. Confidence data from Germany was very upbeat today, where the ZEW economic sentiment rose to 20.4 in January, up from 17.4 and above expectation of 17.9, while the current situation gauge rose to 95.2, up from 89.3 and above expectation of 89.5, hitting a record high. The EU ZEW economic sentiment rose to 31.8, up from 29.0, also beating expectations of 29.7.
The focus on Wednesday will be on the EU/US Flash Manufacturing/Services/Composite PMIs and the US Existing Home Sales although most traders will be looking towards tomorrow’s ECB Meeting. The UK Unemployment figures are also due today (exp 4.3% headline rate, Claimant Count Change +5.4K). Oil traders will look out for the EIA Crude Oil Stocks Weekly Change, with a large drawdown likely to take WTI above 65.00 pb. Have a good day.
|INDICES / COMMODITIES|
|ASX SPI: 6004|