I suggested sarcastically in my calendar review at the end of yesterdays Macro Morning that last night was going to be “quiet”, what with a slew of very important data across both sides of the Atlantic. And what happened? Well nothing really, with slight falls in European stocks as German unemployment – the only measure the ECB really cares about alongside German inflation – came in bang on expectations. In the US it was slightly disappointing with a still positive, but slowing rate of GDP although still robust. Bonds were sold off, possibly on the higher than expected German CPI print, while gold continued its fall even as the USD sold off slightly against the majors.
Recapping Asia’s session where the Shanghai Composite rose slightly but still maintained resistance just below the 3400 point level. No follow through on the back of the recent interest rate and reserve rate cuts, the stronger USD and weak momentum could see this breakdown and revisit the 3000 lows:
The Nikkei 225 closed in the green – just – but fell slightly in futures trading alongside correlated European and US stocks, indicating a poor open this morning. It’ll be a turbulent day because of Japanese CPI and the BOJ statement thereafter with a stronger Yen the last thing Japanese stocks need:
