Following their impressive gains of late stock markets have taken a leg lower today with the Eurostoxx (-1.02%) leading the decliners. The Dax (-0.72%) and FTSE (-0.53%) also both ended the European session in the red with the former moving back below the 10300 level. Stateside, stock markets are holding up relatively well but they still have a few hours until their closing bell. The US500 (-0.42%) trades 2091 at the time of writing.
The main economic releases this afternoon came at 13:30 with the US core PCE price index moving higher to 0.2%, as was expected. At the same time Canadian GDP posted a second successive monthly drop, decline by 0.2% month on month. Later on we had some weak US data which negated the rise in the PCE print somewhat as the CB consumer confidence declined to 92.6.
Crude benchmarks are slightly higher today as the bi-annual OPEC meeting this Thursday approaches, with Brent ( 1.05%) consolidating above $50 a barrel. Gold ( 0.83%) looks set to break its losing streak, with the precious metal trading $1214.77/oz at the time of writing.
After some early gains during the Asian session the GBPUSD (-0.78%) has experienced a rather nasty reversal and currently trades back close to the 1.45 handle. The EURGBP ( 0.83%) has also gained on some weakness in sterling as Brexit polls today suggest the position of the remain camp isn’t as strong as was previously thought. Antipodean currencies are also moving firmly higher with the NZDUSD ( 1.13%) and AUDUSD ( 0.83%) sitting on impressive gains.
Looking ahead there’s some important Chinese manufacturing and non-manufacturing data released overnight with the official read and the Caixin figures both due out. Also during the Asian session we have Australian GDP Q/Q whichis expected to increase by 0.6%. UK Manufacturing PMI at 09:30 is the standout release of tomorrow morning’s session before the US ISM equivalent rounds off the day at 15:00.
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