By Greg McKenna in for Chris Becker
Remember to read “Trading Week“, published Saturday morning, to put these events and ideas in context.
The market in our time zone was under a little pressure in trade today but nothing terrible in the context of what happened in Europe last night. The Shanghai B shares fell 0.73% and Tokyo 0.81% while the Hang Seng is up 0.58% somehow (not close enough to it sorry).
In Australia the ASX 200 Index fell 0.71% to 4266.3 – RIGHT ON SUPPORT as you can see in the chart below.
The Aussie dollar has been battling all day and is just sitting below 1.00 at 0.9993 after making a low in Asia today at around 0.9945. In Aussie bonds, rates didn’t move overly far given a lack of catalysts in our day. The minutes of the RBA’s meeting this month didnt give any more colour on the near term direction of rates but then neither did the statement so that’s not unexpected.
In the past hour, however, we have had the release of the German and French GDP numbers. France printed 0.0% as expected by the punditry but German GDP was 0.5% versus expectations of a lacklustre 0.1%. Not surprisingly the euro bounced a little which is why the Aussie is also up. But as you can see in the chart below the trend in German GDP is still not very healthy.
Tonight
Eurozone GDP is out and I’d expect a very different result to the whole of Europe to what we saw from its core in Germany. In Germany there is also the release of the ZEW survey. In the US we have CPI, Retail Sales, Empire Manufacturing, Business Inventories and NAHB Housing releases.
You can find Chris’s Twitter here.
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