Here are the latest developments in global markets:
Forex: The Australian dollar continued to trade around three-week highs at $0.7645 (+0.63%) following upbeat data on retail sales and the RBA’s decision to keep rates steady at record low levels. In the Eurozone though, retail sales disappointed markets with the measure diving unexpectedly to a three-week low as food prices fell sharply. Euro/dollar retreated in the wake of the data but erased its losses afterwards, trading flat at $1.1872. Sterling dipped to a five-day low of 1.3369 before it bounced back above the 1.34 key level (-0.50%) after the British service PMI missed forecasts. However, stalled Brexit talks were the main drag on the market. Euro/pound approached a one-week high at 0.8866 (+0.56%). Dollar/yen was moving sideways around 112.40.
Stocks: European stocks were on the backfoot as sell-off in tech and healthcare shares gained momentum. The pan-European STOXX 600 declined by 0.53%, the German DAX 30 fell by 0.66% while the French CAC 40 retreated by 0.70%. The British FTSE was steady, finding support on a weaker pound.
Commodities: Oil prices remained weak, with the WTI crude falling by 0.63% to $57.11 per barrel amid concerns over rising US supply output. Brent declined by 0.35% to $62.23. Gold stood flat at $1,276.40 per ounce.
Day ahead: US & Canada release trade figures; US ISM non-manufacturing PMI also in spotlight
Trade data out of the US and Canada will be closely watched in the coming session, while US PMI figures and the global dairy price index will be also in focus.
At 1330GMT, US trade data are likely to show a wider trade deficit in October, with the amount climbing by $4 billion m/m to $47.50 – a six-month high – whereas in Canada, the trade deficit will likely narrow by C$0.48bn to C$2.70bn in the aforementioned period, reaching the lowest level in five months.
Later in the day, US non-manufacturing PMI readings published by the Institute of Supply Management are expected to pull back to 59.0 in November after touching a more than a two-year high of 60.1 in October.
In energy markets, investors will look forward to the API weekly report due at 2130GMT which tracks the level of the US crude, gasoline and distillates stocks as concerns over rising US output linger in the market.
In other commodities, global milk auctions will be also eyed probably, bringing some volatility to the kiwi as New Zealand is a major dairy exporter. However, the release is tentative.
In the political front, the UK Prime Minister, Theresa May will meet with cabinet members later today before she begins talks with the DUP on Wednesday in order to persuade Ireland to drop its veto on the Irish border issue which is crucial for Brexit negotiations to move to the second stage of trade talks.
