Overnight in the Asia Pac area the Nikkei 225 was marginally higher and the ASX pushed 0.67%, following the lead from Wall Street. The most significant moment from yesterday was obviously the signing of the phase one trade deal.

However, as suggested this was already priced into markets and more information was needed. Phase two is set to start when President Trump visits China to reciprocate the signing of phase one in Beijing. At the start of the EU session the FTSE 100 is slightly weaker, while the DAX is around 0.27% higher.

In the FTSE 100 Pearson is the biggest loser today, falling some 10% due after reporting revenues as flat and that it expects profits to fall next year. The company also announced CFO Coram Williams, seen as a potential successor to the current CEO, is leaving to take a “comparable role” at a firm in the EU.

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In FX markets NZD/USD has made a recovery from lows seen yesterday of around 0.6584 to today trade 0.39% higher at 0.6641. Data overnight showed that electronic card sales YoY rose 3.9% versus analysts’ estimates of 2.1%. However, the MoM reading did disappoint as this data is not really going to affect the thinking of the RBNZ who are largely expected to remain on hold at their next meeting.

In commodities markets WTI and Brent are still on the rise after OPEC upgraded their demand guidance and the likelihood of production cuts extending to June if the April meeting cannot take place due to scheduling conflicts.

Gold rejected the major $1557.10/oz resistance once again to move around 0.30% lower overnight but the precious metal starts the session 0.15% higher overall.

Copper is looking good this morning and is breaking the previous wave high. It will be left to COMEX traders later in the session but as it stands the price is 0.26% higher at $2.85/lb.

Today we are looking out for German CPI, IEA monthly report (Oil), ECB minutes, US import & export prices, US retail sales, US Philly Fed data and comments from ECB’s Lagarde, Fed’s Bowman and BoE’s Haldane.

For those of you who watch EM currencies there are rate decisions from Turkey and South Africa.


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