Recommended NZ | Guide to Money | Gimme: Competitions - Giveaways

Market mixed ahead of important data due tonight - Chan

Contributor:
Fuseworks Media
Fuseworks Media

Global stock markets closed mixed overnight as investors reassessed risks between corporate earnings and potential trade dispute escalation. The US dollar strengthened against a backdrop of lower unemployment numbers, despite lower producer price data and a slump in bond yields. Japanese GDP growth posted a healthy improvement of 1.9% during Q2, a boost to investors’ confidence in the economic outlook after a negative number in Q1. The Asia Pacific equities market may open stronger as sentiment from Japan spreads.

Copper markets rallied after a 9 days slump despite pressure from a stronger US dollar, suggesting an improving industrial outlook. The oil prices stabilized overnight as China removed US crude oil from its tariff list. Commodity markets may remain vulnerable as trade concern hovers.

The Euro and Australian dollar plunged overnight as the US dollar rallied. Both currencies may stay under pressure as news flow and economic data is absent from the region. The Euro in particular is down to its key support level formed within the last few months. However, lower local currencies may lift local sentiment in the short term.

UK GDP is expected to show the economy grew at 1.3% per annum but industrial production could slow to a monthly growth rate of around 0.3% from 0.4% previously. With growth a top investment theme these numbers and US Consumer Price Index (CPI) tonight could determine the direction of markets over the next 24 hours.

- By Jonathen Chan (market analyst, CMC Markets and Stockbroking)

All articles and comments on Voxy.co.nz have been submitted by our community of users. Please notify us through our contact form if you believe an item on this site breaches our community guidelines.

Personal Finance guides from guide2.co.nz

The latest money guides from authoritative New Zealand sources: Investing, KiwiSaver & Saving, Managing Money, Home Loans, Credit Cards, Tax.

Links will take you to guide2.co.nz.

Credit Card Comparison TablesCompare Credit Cards - Interest rate and fees comparisons for New Zealand banks.