The financial markets are rather quiet in European session. Chinese stocks extended recent strong rally with Shanghai SSE regained 3100 handle. But optimism was not much shared by investors elsewhere. Both Asian and European markets are mixed in general.
In the currency markets, Australian Dollar remains the weakest one for today as traders increased bet on RBA rate cut this year after dismal Q4 GDP. Sterling is the second weakest as there is no breakthrough on Irish backstop while next week’s crucial Brexit votes are approaching. Yen and Dollar are the strongest ones for today. OECD’s downgrade of global growth forecast is largely ignored.
Over the week, the picture is similar, with Yen and Dollar beings strongest. Aussie is the weakest one. Canadian Dollar follows as traders now await BoC rate decision. Recent economic data from Canada pointed to slowdown in growth momentum. Yet BoC Governor Stephen Poloz maintained tightening bias in recent comments. There is risk of a mild dovish twist in today’s BoC statement. If that happens, the Loonie will likely suffer another round of selling. Also WTI crude oil stabilizes at around 56 for the moment but looks vulnerable.
Also to be released include Canada trade balance, labor productivity and Ivey PMI. US will release ADP employment, trade balance, crude oil inventories and Fed’s Beige Book.
In Europe, currently:
- FTSE is up 0.32%.
- DAX is down -0.25%.
- CAC is down -0.15%.
- German 10-year yield is down -0.024 at 0.146.
Earlier in Asia:
- Nikkei dropped -0.60%.
- Hong Kong HSI rose 0.26%.
- China Shanghai SSE rose 1.57%.
- Singapore Strait Times dropped -0.35%.
- Japan 10-year JGB yield dropped -0.0132 to -0.005, turned negative.
