Risk sentiment is this week's focus following the US/British/French attack on Syria, with the USDJPY's tentative breakout beginning to falter as prices head into the Ichimoku Cloud.
Article / 13 July 2016 at 7:01 GMT

Morning Markets: FTSE muted as May sweeps in



  • Eurozone: Industrial Production (0900 GMT) 
  • US: Atlanta Fed Business Inflation Expectations (1400 GMT)
As David Cameron bows out and Theresa May sweeps in as prime minister of the United Kingdom, the FTSE is tipped to open mildly lower while Cable – on a day that is also the 150th anniversary of the laying of the first working transatlantic telegraphic cable – is slightly firmer on its New York close.

And, despite stronger finishes both on Wall Street and across Asia, Europe's leading stock exchanges are expected to open softer too as worries about the implications of Brexit and the increasingly dire straits of Italy's banking sector continue to gnaw on investor sentiment. Europe's summer holiday season and the liquidity lull that habitually brings with it is also playing a role in keeping activity muted.

There's little of interest on today's economic release calendar besides Eurozone industrial production at 0900 GMT. The expectation here, says James Picerno, is for output to slide in May having risen sharply in April.

Former Fed chair Ben Bernanke is visiting Tokyo today for talks with prime minister Shinzo Abe and Bank of Japan officials so do keep an ear out for any soundbytes about that country's plans for another blast of policy easing.

Finally, back to that original cable again which was, in its day, as momentuous a technological leap as today's supersonic fibre cables that transmit data in microseconds – Marconi's cable cut the communication time between New York and London from two weeks to two minutes. Stirring stuff.

Market signals

Asian session

  • The NZ Food Price Index showed food prices in the 12 months to June fell by 0.5%
  • Australia's Westpac MI confidence survey for July saw consumer sentiment dropping 3% 
  • The country's close election and Brexit were key contributors to its fall to 99.1
  • The iron-ore price rose nearly 7% overnight to $59.38/tonne
  • Asia markets advanced, extending a global rally
  • Banks and miners pulled ASX200 higher on iron ore and oil rallies before gains trimmed
  • ASX200 was up 0.5% at 0600 GMT
  • Japanese shares continued to climb
  • Nikkei 225 was up 1.3% at 0500 GMT

Forex ahead

  • AUD traded above 0.76 but had lost 0.21% at 0600 GMT
  • The dollar eased against the yen 
  • USDJPY was down 0.49% to 104.22 at 0600 GMT

From the Floor

Safe as houses? “We saw a massive deceleration in the UK RICS house price index for May pre-Brexit and today’s report for June will be interesting”, says Hardy.

Gold’s support. “Gold remains in good health as long as it stays above the $1,300/oz area”, says Hansen.

Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.

In opinion


The Eurozone's industrial sector is in focus with the consensus forecast expecting May's output to fall 0.8% in monthly terms – a hefty reversal after April’s 1.1% rise, writes James Picerno.

Nikkei recoups
Japanese stocks are recovering from their post-Brexit woes, writes the Saxo APAC Sales Trading Team

Mining bounce
Australian shares were buoyed by the rallies in iron ore and oil prices overnight, writes the team at Saxo Capital Markets (Australia)


 Ongoing rally... Asian markets extended their gains on 
positive leads from the US. Photo: iStock

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