It has been a fairly quiet session for the most-part on Thursday, at least until the release of the FOMC Minutes, which confirmed that the Fed is considering letting the balance sheet start to run off, without explaining how it will do it. The reaction was mixed, with stocks showing the most interest by spiking higher before reversing and heading back to where they had started from, and ending the day on their lows. The dollar was mixed, with the $Jpy being the most notable mover, briefly heading to a session high before reversing sharply lower, to finish the day at the lows. In other developments, WTI made a new 1 month high, but has since reversed those gains and is finishing towards the day’s lows after the latest Energy Information Administration (EIA) report showed an unexpected rise in U.S. crude inventories to a record high. In terms of data, note that the ADP employment report showed 263k growth in private sector jobs, (v expectations of 189k) while the prior month’s figure was revised down from 298k to 245k, but was still a solid figure, and comes ahead of tomorrow’s US employment/NFP report.
The main action on Thursday will revolve around the Trump/Xi meeting and until then it looks likely to be rather quiet. Ahead of that though, the RBA Asst Governor, Debelle will be speaking, while the Caixin China Services PMI will also be released and could create some activity in the Aud. From Europe, we get the German Factory Orders and the ECB Minutes. It mostly looks like a day of sitting on hands, waiting for Trump and his Twitter account to get busy.
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|INDICES / COMMODITIES|
|OIL (WTI): 50.80|