There are a couple of announcements that could affect the markets today, with the CPI and PPI numbers coming out of the United Kingdom, and the Trade Balance numbers coming out of China. While the British numbers will more than likely be somewhat localized to the FTSE and the British pound, the Chinese numbers of course could have far-reaching effects if they miss drastically. After all, China tends to be the manufacturer of most things global, and if those numbers are heavily skewed towards importing, it means that the rest of the world is buying less Chinese goods.
1 – With the Chinese number coming out, a poor showing would of course favor the selling of risk appetite, such as stock markets and higher yielding currencies. Look for the Australian dollar to react to this announcement, as it is quite often treated as a bit of a proxy for the Chinese economy by currency traders.
2 – Precious metals look like they are getting quite a bit of a bid during the session on Monday, something that longer-term seems to be likely as well. Ultimately, pullbacks will more than likely be looked at as value that many are out there willing to take advantage of. Remember, precious metals got absolutely decimated in the last year or 2, so there should still be plenty of value to be found.
3 – Energy seems to be having a good session on Monday, as we start to reach towards the April 17 meeting in Doha. At this point in time, cautious optimism seems to be the flavor of the month so to speak, and with that being the case, call buyers will more than likely show themselves again in the petroleum markets specifically.
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