This morning we note slightly worse sentiment on equity markets as the trade data from China were disappointing. Moreover, the oil prices has continued increases as the API’s estimates showed decline in the US oil inventories. As far the currency market is concerned the strongest is Japan’s yen.
The latest American Petroleum Institute (API) weekly inventory data recorded a draw of 3.56mn barrels, which was very close to the expected draw of around 3.5mn barrels. Crude prices were subjected to some profit taking after the release but the data overall will help underpin sentiment and WTI held above $50.0 following the data.
Industrial output in the UK increased by 2% m/m in April, lifting an annual increase to 1,6% from -0,2% in March, defying the PMI reading which was the weakest in 2016 in that month. That reading helped the GBP but obviously the currency is going to be mostly under influence of polls in the nearest future.
The Japan’s gross domestic product, expanded from the previous quarter at an annualized pace of 1.9%, faster than a preliminary figure of 1.7%. The result was in line with a median forecast of economists surveyed by Bloomberg. While the data confirm that Japan’s rebound in the first quarter was stronger than initially thought, Prime Minister Shinzo Abe has already decided to postpone a sales tax increase and put together a stimulus package later in the year.
May’s Chinese trade data offered the latest sign that the world’s second-largest economy was still a long way off from full health. Exports in dollar-denominated terms tanked 4.1 percent on-year. Imports meanwhile edged down 0.4 percent on-year. That left the country with a trade surplus of $49.98 billion, wider than April’s $45.56 billion reading but missing Bloomberg’s $55.70 billion forecast.
Later on, we have a release of DoE’s data on change in oil inventories in the US in the afternoon. The key event of Wdnesday is the RBNZ’s decision on interest rate at 22:00.
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