|Day's range||5,883.30 - 5,942.40|
|52-week range||5,724.80 - 6,373.50|
While we can expect some focus on the FOMC minutes, it’s all about the GBP and the EUR today, the EU Summit putting Brexit and Italy in focus.
Risk appetite trickles back into the markets early on supporting the commodity currencies, while the Kiwi gets a boost from Q3 inflation numbers.
Brexit jitters hit the Pound, with Italy’s budget delivery to the EU later today weighing on the EUR, as risk aversion returns to the markets.
Looking at it another way, the S&P 500 Index is now down six straight trading sessions. It is also trading below its 200-day moving average for the first time since April. The Dow has lost more than 1300 points in two-days. At one point during the trading session, the NASDAQ Composite was down over 10 percent from its recent top, putting it briefly in correction territory.
The risk off sentiment continued through the early part of the day, with better than expected trade data out of China doing little to settle the markets.
While the ECB monetary policy meeting minutes and Brexit will be eyed, U.S inflation figures could have a far greater influence this afternoon.
China service sector activity picks up as the PBoC announces a 4th cut in the RRR, while the Greenback sees more upside early on.
Consumer spending in both Australia and Japan improved but not by enough to shift sentiment as focus shifts to U.S labour market stats.
The Dollar’s on a tear, only the Japanese Yen managing to hold on in the early hours, with a record trade surplus out of Australia doing little for the AUD.
A mixed start to the day, the effects of the U.S – China trade war evident in the Chinese numbers, while the U.S economy powers ahead.
The Loonie was on the move at the start of the 4th quarter, with talks of an imminent NAFTA deal providing support, ahead of a busy week.
Last quarter’s solid performance may have proved that investors aren’t too worried about rising inflation, higher crude oil prices, Federal Reserve rate hikes, and trade disputes. Or any other negative headlines put out there by the new services designed to discredit President Trump, derail the economy or essentially bring an end to the stock market rally. However, the stakes will be a little higher in the fourth quarter.
It’s a busy day on the data front, with inflation numbers out of the Eurozone and the U.S the key numbers, though geo-politics will also influence.
Trade will continue to be the area of focus as Trump and Japan’s Prime Minister Abe meet to discuss trade terms. Any negative comments likely to raise tensions further.
Kiwi Dollar spikes on less pessimistic business sentiment, with Trump and Powell in the spotlight later today to hit the Dollar and the majors.
With stats on the lighter side and trade war chatter hitting the markets, Trump’s speech to the General Assembly at the UN could ruffle a few feathers.
Trade war jitters return, weighing on the equity markets and commodity currencies, Trump’s 2nd general assembly speech tomorrow of little comfort.
Inflation numbers out of Japan this morning were a reminder of how far off the BoJ is from making a move, focus shifting to the EU and the Oval Office.
Impressive 2nd GDP numbers drive the Kiwi, with Brexit and retail sales numbers putting the Pound in the spotlight.
It’s been a bullish start to the day, in spite of rising trade war tension, the Aussie Dollar leading the way, focus now shifting to UK inflation.
The mild response by investors to the new tariffs suggests investors may be waiting to see which industries China decides to target in its retaliation. Again, the thought is, why sell the whole market when only a few sectors, industries or stocks may be negatively affected by China’s retaliatory efforts. The Australian Dollar is trading higher early Tuesday, bucking the negative tone set earlier in the session by new tariffs on China by the U.S. and relatively tame Reserve Bank of Australia monetary policy meeting minutes.
Another set of tariffs on China supporting the U.S Dollar early on, with the RBA meeting minutes failing to give the Aussie Dollar a boost.
Economic data could take a back seat through the day, the markets more eager to see whether there is a green light for U.S – China trade talks.
Economic data out of China was better than expected this morning, supporting improved risk appetite, with focus to shift to U.S retail sales and the USD.
Monetary policy to drive the EUR and the GBP this afternoon, with inflation figures to hit the USD, while Brexit, NAFTA and Trump will also be a factor.