US stocks ended higher on Tuesday after a choppy session, with traders now looked forward to the earnings season, with Amazon leading the way on hopes that criticism from Donald Trump would not translate to policy changes. The US$ was mixed but generally firmer against the EU majors, with US$Jpy rebounding well on the back of the move in stocks. The Euro is a little lower in the US session after having broken down through minor support. The commodity bloc is mixed, with the Aud heavy ahead of the upcoming Retail Sales, but the Kiwi is underpinned due to some sales of AudNzd.
In terms of data, the EU PMIs initially did little to move the market although the Euro has remained heavy ever since their release. The EU PMI manufacturing was finalised at 56.6 in March, unrevised, down from February’s final reading of 58.6, while the German manufacturing PMI was revised down to 58.2, from 58.4. The UK PMI manufacturing rose 0.1 to 55.1 in March, above expectation of 54.7. Earlier in the European session, the German retail sales were down 0.7% mm, well below the forecast of being up 0.6%.
Wednesday is going to be a busy 2 Apr, with the focus being on the Preliminary March EU CPI (exp 0.9% mm, 1.4% yy; Core, 1.1% yy) and Unemployment rate (exp 8.5% – Feb). Before then Australia will look to the Feb Retail Sales (exp +0.3% mm) and Building Permits (exp -0.7% mm) for guidance, as well as the Caixin China Services PMI. Later in the day, the US 2 Apr will see the March ADP Jobs data (exp 205K), the Markit services/Composite PMIs, the ISM Non-Mfg PMI and the Feb Factory Orders (exp 1.8%). The EIA Crude Oil Stocks Weekly Change are due and the Fed’s Bullard/Mester will also be speaking.
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