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    NYLON HANDOVER: Stocks and Oil continue to crumble

    Data, which only a couple of months ago would have been taken with a pinch of salt, continues to see investors behave erratically and send markets lower, as weak China PMI data dominated the sentiment to see stocks and oil lower. 





    - Global stocks continued to slide as investors absorbed the weak Chinese data from yesterday's Asia session. Although PMI data was a revised figure which came in on or around consensus, it was taken as confirmation that the world's 2nd largest economy could take a down turn and lower global growth
    - In currencies the Japanese Yen saw significant inflows as investors flocked to safe havens. USDJPY, down over 1.2% is now at a 5-day low whilst AUD and NZD crosses depreciated as carry trades were unwound. 
    - Canadian manufacturing contracted but also had the added pressure of soft oil prices. However, it held up well against the Greenback which itself had softened after its own manufacturing sector missed expectations, but above 50 (expansion). As the main theme was China data CADJPY plummeted over 2% by NY close
    - Global Dairy Prices (GDT) rebounded again for a 2nd consecutive auction to help support NZDUSD above 63c, a level it appeared destined to break below earlier in the session.
    - In commodities Oil prices plummeted, wiping off yesterday's gains to see Brent shed 7.4% and WTI 6.9%.
    - Asia is likely to kick off in a risk-off environment with the main calendar event being Australian GDP and inflation estimates. After yesterday's cash rate statement revealed nothing new regarding RBA's stance with monetary policy then traders are likely to assume a future Dovish view if GDP misses target to push AUDUSD below 70c




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