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.
Another very mixed day on Asian share markets, with China markets up, Japanese markets down, but Australia flat. New Zealand down. This will be a short post – mainly because I can’t upload charts at the moment!
Bears seem to be in hibernation on the local market, with the S&P/ASX200, closed in the green – just – up 3 points or 0.09% to 4362, at an eight (sorry GB) month high and remaning above resistance, giving the bulls hope.
The Nikkei 225 finished down 0.3% at 9561 points, the SSE Composite is up 1.2% at 2406 points, whilst the Hang Seng is flat at 21011 points.
The FX markets still staying with King USD at the moment, with only the Pound being bid up. The AUD fell on release of the import/export prices which showed a divergence from the AUD traded price, i.e it should be a lot lower as inflation (as measured by the CPI) tapers. The currency then steadied at 1.0327, with the Euro also steady at 1.3136 again.
Aussie 10 year bonds were sold off very slightly today, with yields rising 1 pip to 3.83%
Commodities were flat with a bullish bias, with gold having another quiet day during the Asian session, stable (as this speculative “currency” can be) at $1644USD an ounce whilst in AUD terms it was up $1 to $1589 per ounce.
The Futures and the Macro data
Tonight will be another fascinating session to watch (and participate). What will the aftermath of last nights Spanish debt auctions? Already the debt markets have opened by selling off, with yields almost crossing 6% again, up 10 pips for both Spanish and Italian bonds (yields up to 5.7%) French bonds are feeling the heat too.
European data starts with German PPI (higher than expected again) and then an IFO survey, and then UK retail sales which are expected to be anemic at only 1.4% over the year. Which makes sense, since inflation in the UK is outstripping earning power. Its a data free night in the US although more corporate earnings will follow at the reporting season rolls on.
You can find our Economic Calendar here.
See you at Trading Week tomorrow morning – I may make this a podcast if charts can’t be uploaded.
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