Big day ahead for markets, China & US in focus

September 14, 2017

It’s a really big day ahead for markets with significant information from China and the US being released.

The USD continued to strengthen against the Euro overnight to fall back into the $1.18 range, where it is currently $1.1887. Investors are buoyed by the Trump tax plan being put at the centre of attention once again. Markets are also eyeing crucial CPI & Core CPI data that is being released tonight. The gains in the USD and also a wage inflation miss in the UK saw the pound retreat from its 1-year high, to sit a its present level of $1.3208.

US stocks finished reasonably flat across the board, with the Dow being the best performer, up 39.32 points (+0.18%) to finish the trading session at 22,158.18. European stocks were a mixed bag, but only modest gains and losses were made. The DAX was the best performing major index, up 28.80 points (+0.23%) to 12,553.57. On the other hand, the FTSE was again the worst performing European stock, down 20.99 (-0.28%) to 7,379.70.

Gold continued its pattern of losses throughout the night, currently at $1,325.90, as investors continue to flock to equities. Oil had a big rally overnight, with WTI jumping 2.2% to settle at $49.30. This is on the back of an International Energy Agency report that raised its global oil demand outlook for 2017.

Turning to today and there is quite a lot of information set for publication, with some vital economic data/events emanating from China, UK and US. China is publishing Industrial Production figures, while the UK central bank meets to decide interest rates and associated monetary policy settings, including the Asset Purchase Facility. Meanwhile, the US is releasing vital CPI & Core CPI data.

Other data today includes:

Australia – Employment Change, Unemployment Rate, Melbourne Institute (MI) Inflation Expectations

China – Fixed Asset Investment, Retail Sales, M2 Money Supply, New Loans

Japan – Revised Industrial Production

Europe – Swiss Libor Rate, SNB Monetary Policy Assessment, meanwhile German Buba President Jens Weidmann, speaks.

US – Unemployment Claims, Natural Gas Storage

Canada – NHPI