Global Markets:
- Asian stock markets: Nikkei up 0.40 %, Shanghai Composite fell 0.05 %, Hang Seng gained 0.30 %, ASX 200 rose 0.70 %
- Commodities: Gold at $1213 (+0.10 %), Silver at $16.02 (-0.05 %), WTI Oil at $49.17 (+0.01 %), Brent Oil at $50.02 (-0.04 %)
- Rates: US 10 year yield at 0.81, UK 10 year yield at 1.34, German 10 year yield at 0.11
News & Data:
- China Caixin Services PMI (May): 51.2 (prev 51.8)
- China Caixin Composite PMI (May): 50.5 (prev 50.8)
- Japan Nikkei Services PMI (May): 50.4 (prev 49.3)
- Japan Nikkei Composite PMI (May): 49.2 (prev 48.9)
- Japan Labour Cash Earnings YoY (Apr): 0.30% (est 0.90% vs prev rev 1.5%) Japan Real Cash Earnings YoY (Apr): 0.60% (prev rev 1.6%)
- NZ ANZ Commodity Price (May): 1.0% (prev -0.80%)
- ECB's Draghi: Expect rates to remain low for an extended time –BBG
- Draghi: Inflation rates will remain low and negative over the next few months –BBG
Markets Update:
Weaker than expected Chinese Services PMI numbers weighed on risk sentiment overnight and benefited the Japanese Yen. USD/JPY extended its losses to 108.57, down 0.25 % on the day. Traders are now waiting for US employment data at 13:30 BST today.
The ECB meeting yesterday proved to be a non-event and the Euro barely reacted to it. EUR/USD was caught in a 1.1140-60 range overnight. GBP/USD volatility has been subdued as well, with the pair consolidating between 1.44 and 1.4425.
The Australian Dollar declined slightly after the Chinese data was released, but eventually retraced the losses and climbed back to 0.7240. NZD/USD remains very well bid, with the pair rising to 0.6835 overnight. Resistance now lies at 0.6840-45 and a break above would suggest a move towards 0.70 could be possible in the near-term.
Upcoming Events:
- 08:45 BST – Italian Services PMI
- 08:50 BST – French Services PMI
- 08:55 BST – German Services PMI
- 09:00 BST – Euro Zone Services PMI
- 09:30 BST – UK Services PMI
- 10:00 BST – Euro Zone Retail Sales
- 13:30 BST – US NFP
- 13:30 BST – US Unemployment Rate
- 13:30 BST – US Average Hourly Earnings
- 13:30 BST – US Trade Balance
- 13:30 BST – Canadian Trade Balance
- 15:00 BST – US ISM Non-Manufacturing PMI
