Morning Markets: A kick in the glut
- UK: Retail sales (0830 GMT)
- US: Weekly unemployment claims (1230 GMT)
- US: Chicago Fed National Activity Index (1230 GMT)
- Eurozone: Flash consumer confidence indicator (1400 GMT)
- US: Weekly natural gas storage report (1430 GMT)
The Shanghai Composite has rallied above the important 4,000 mark again, helped by reports that China Securities Finance Corp has denied reducing holdings in listed companies. The gains reflect a broader positive trend in Asian equity markets, which have largely headed higher Thursday despite negative sentiment from Wednesday's US session.
In New Zealand, the central bank came out dovish yesterday and cut rates yet further, but the smaller-than-forecasted cut was interpreted by markets as slightly hawkish even given the Reserve Bank of New Zealand's downgraded growth outlook and easing bias. The NZDUSD rallied on the news, climbing above 0.663 in the Asian session.
Yesterday saw a rise in US oil inventories that hit markets hard, sending WTI crude below the psychologically important $50/barrel level as the worldwide rout in commodity prices continues to impact global markets. The resurgence of a broadly bearish trend in cruse has oil-dependent currencies from Canada to Russia on the ropes, and is making its presence felt in energy sector equities as well.
- New Zealand cuts official cash rate by a quarter percentage point to 3%.
- Japan's trade deficit narrowed in June as exports rose 9.5%.
- Commodity currencies suffer after rise in US oil inventories.
- Resources equities under pressure from lower oil, gold prices.
- The S&P/ASX 200 opened lower, down 0.09% to 5,609.50 (at 0132 GMT)
- South Korean GDP was lower than expected at 2.2% in annual terms (2.3% expected).
- EUR posts gains as Greek parliament passes reform bill.
- NZD rallies on smaller-than-expected rate cut.
- AUD climbs versus the dollar on improved Aussie business confidence.
- USD stays above recent lows versus the JPY.
- Home sales data keep USD bull trend in view.
From the Floor
Easy now. “The RBNZ statement was not as dovish as the market had been expected,” says Hardy.
In the money. “We’ve seen a host of decent European earnings releases from Daimler, Roche and Credit Suisse,” says Seagrave.
Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.
Today’s monthly update on retail spending in the UK will test expectations on the likely timing for a rate hike by the Bank of England, writes James Picerno.
Rising currencies have an impact on commodities and the stronger US dollar has chipped away at base metal prices, says Saxo Capital Markets Australia.
Apple's below-par earnings have pushed the stock to a critical line of support, a sustainable break below would offer active investors a nice trade to the short side, says Serge Berger.
Beijing was able to contain the Shanghai Composite's crash earlier this month but its intervention was achieved at the cost of market credibility, writes Michael McKenna.
Pound of flesh
Sterling is rising against both the dollar and the euro, and hopes for a BoE rate hike have changed the macro landscape for GBP traders, says Stephen Pope.
Morning Markets goes out on the TradingFloor platform at 0700 GMT, Monday to Friday.
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