Not the Prince
Trading Day covers the relevant moves in the Asian stock, commodity, debt and currency markets highlighting trading ideas and investment opportunities. Remember to read “Trading Week“, published Saturday morning, to put these events and ideas in context.
If you’re just jetting back in from Mars after missing a mainstream media mega-missive on monetary policy yesterday, no problem, the meme still sticks – interest rates go down, secondary asset casinos…err markets, go up.
It wasn’t just the local market reflecting this, as all Asian markets were back on deck after the May Day holiday yesterday, with the S&P/ASX200 only gaining 6 points or 0.1% to 4435 points, consolidating as I expected.
The big moves were in the Chinese markets – with the Hang Seng up 1.1% currently and the Shanghai Composite up 1.7% to 2436 points, up 12% year to date and just pipping above its 200 day moving average for the first time since May 2011:
On that note, the Nikkei 225 was up 0.3% after falling sharply yesterday, as the Yen weakens against the USD finding support at the 80 level (in yellow against the Nikkei below):
The AUD remains in a funk against the USD after yesterday’s rate cut, hovering around the 1.033 level, whilst Aussie bonds gave back most of yesterday’s gains, yields rising 10 basis points on the 10 years today, up to 3.63%
Commodities continue to look weak, on Asian sessions at least, with gold falling 0.4% alongside silver, now at $1655USD an ounce whilst in AUD terms it was down $7 to $1601 per ounce.
The Futures
European equity futures are looking hopeful – the Eurostoxx 50 is up 1.2% – as closed markets begin to respond to the good macro data (so far) in this week’s manufacturing PMI extravaganza. German bunds are being sold off slightly, which makes sense.
The dataflow tonight is German centric, with unemployment, manufacturing PMI results for both the core German nation and its periphery underlings, called the EMU, with European unemployment likely to remain well above 10% – huzzah, LTRO worked.
Further, Italian producer price index figures are released and then US data with the ADP employment report and factory orders, with consensus expecting a mild drop on both figures.
You can find our Economic Calendar here.
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