The US$ and stock markets are both firm on Wednesday after Donald Trump and Congress reached a two-year deal to increase the debt limit in order to cover government spending. The Euro in particular was under pressure throughout the session, sending the DXY to a 5 week high after breaking through important support, and looks very heavy ahead of Thursday’s ECB Meeting. Sterling was under pressure as well, as Brexit concerns continue, with Boris Johnson being elected the new UK PM. Stocks ended up by around 0.6%, underpinned by some solid quarterly corporate reports, while WTI rallied by around 1.5%, both also being underpinned by reports that the US and China will resume trade talks next week.
Wednesday will begin with the NZ June Trade Balance (exp $+100 mio mm/-$5.1 bio yy) and then the rest of the day is pretty much going to focus on the global flash PMIs, beginning with the Nikkei Japan Mfg PMI and then heading into those of the EU and the US. Weak EU PMIs would add to the pressure on the Euro and could mean some immediate action from the ECB, tomorrow. The only other items of note on Wednesday will be the US June New Home Sales (exp +6.6%mm) and the EIA Crude Oil Stocks Weekly Change. Other than that traders will be waiting on tomorrow’s ECB Meeting. Until then, have a good day.
Economic data highlights will include:
Wed: NZ Trade Balance, Japan Nikkei Flash Mfg PMI, Leading Economic Index, Coincident Index, EU/US Flash PMIs, US New Home Sales, EIA Crude Oil Stocks Weekly Change
Market moves, in brief:
FX: DXY 97.70 (+0.42%)
Bonds: US10Y; 2.078% (+1.29%), German 10Y; -0.355% (-2.81%), UK 10Y; 0.686% (-3.83%), Australian 10Y; 1.32% (-1.64%), NZ 10Y; 1.565% (-1.26 %), China 10Y; 3.175% (-0.56%)
Stock Indices: DJI; +0.65%, S+P; +0.68%, NASDAQ; +0.58%, EUStoxx50; +1.23%, FTSE100; +0.56%, Shanghai Composite; +0.45%,
Metals: Gold $1417 oz (-0.51%), Silver $16.40 oz (+0.26%), Copper $2.70lb (-0.81%), Iron Ore $120.00 per tonne (NYMEX) (-0.08%),
Oil: WTI $57.02 pb (+1.48%)
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