Steen Jakobsen
The Bank of Japan has abandoned quantitative easing and the European Central Bank may taper its bond-buying programme, so what is the role of central banks in 2017, asks Saxo Bank’s chief economist Steen Jakobsen.
Article / 31 May 2016 at 7:00 GMT

Morning Markets: Stocks healthy ahead of US data

Editor / Saxo Bank

Morning Markets: Prices


  • Germany: Unemployment Report (0755 GMT)
  • US: Personal Income & Spending (1230 GMT) 
  • US: Consumer Confidence Indicator (1400 GMT)

Today's Asian session saw healthy risk appetite boost equities across the APAC region as Australian data came in ahead of expectations in terms of both exports and building approvals. Despite the positive climate, however, the benchmark Aussie index was held down by underperforming financials.

In commodities, coffee prices are on the rise due to severe droughts in Vietnam while crude oil prices remain at local highs; Brent crude is current trading just over the $50/barrel mark while WTI sits just shy of the psychologically important line.

The greenback was bid in the later Asian session, particularly versus the JPY but EURUSD saw some pullback as well. Today's US personal income and consumer confidence readings represent the first two crucial data releases in a major macro reporting week that culminates in Friday's nonfarm payrolls report.

In Europe, the German unemployment release is also expected to impact the euro while the GBP spiked sharply higher overnight as Brexit fears continue to recede in the wake of polling data that appear to be suggesting a lead for the Remain side.

Market signals

Asian session

  • Shares headed higher in Tokyo; the Nikkei 225 rose by nearly 1% on a risk-on wave
  • Shares soared higher in China on hopes that China A-shares would join the MSCI
  • The Shanghai Composite was up by a healthy 3% at 0644 GMT
  • Hong Kong's Hang Seng index was up 1.42% on the day
  • China’s largest private airline to pay $159m for a 13% stake in Virgin Australia
  • Korea's Kospi Composite was up 0.83%
  • India's S&P BSE Sensex was down 0.22%
  • Macquarie maintained its outperform on Qantas, saying it's the "cheapest airline globally"
  • Australian big four bank NAB launched a $750mln hybrid securities issue
  • Australia's exports made a 1.1% contribution to Q1 GDP versus 0.7% expected
  • Australian building approvals rose 3% in April; a 3% drop had been expected
  • Despite a lift from upbeat data, S&P/ASX200 was down 0.54%

Forex ahead

  • The US dollar gained ground against the yen; it was worth xxx
  • The Aussie soars nearly 1% following a boost from upbeat export data
  • EURUSD declining back towards local support around 1.1125
  • Sterling spikes north of 1.47 handle before retracing somewhat
  • USDCAD trading sideways as oil prices remain in a tight range

From the Floor

Let it rip.Everyone is waiting for the US, which gets back in today, to decide whether we go up or do. […] It feels like this market wants to rip on the equity side of things,” says Van-Petersen. 

Turning point.I think most macro indicators will surprise to the upside this week, showing that May is a turning point for the global economy,” says Garnry.

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

In opinion

1....2... 3
A solid rebound in US spending is on the cards, which is a good reason for expecting a similar boost in second-quarter economic activity, writes James Picerno

Data fears
Australian markets had few overnight leads to go on other than the wavering oil price and a drop in the iron ore price, writes the team at Saxo Capital Markets (Australia)

Harvard hawk

Fed chair Janet Yellen's speech at Harvard last Friday left investors expecting an imminent rate hike from the US central bank, writes Stephen Pope

Dollar resistance

The USD is bumping against local resisitance ahead of a major US data week that could determine the path of policy normalisation, says John J Hardy.

SPYing gains

The benchmark USS&P 500 index could be primed to push higher as markets look for a continuation of the upbeat US data trend, states Peter Garnry


Coffee drinkers worldwide will eventually feel the impact on prices of a severe drought in Vietnam that is pushing up coffee futures. Photo: iStock

Morning Markets goes out on the TradingFloor platform at 0700 GMT, Monday to Friday.
Click here
to make sure you're up to date with the latest developments.


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail