Global Markets Overview – June 23, 2014
By Stan Shamu, IG Markets Strategist | June 23, 2014 9:46 AM EST
Risk currencies got off to a bit of a negative start this morning, despite a lack of fresh sentiment drivers for the region. Perhaps some reports suggesting escalating Iraq tension have seen risk modestly offered this morning. This is despite US equities finishing the week on a modestly positive note in a fairly quiet session. The only notable news out of the weekend were comments by ECB President Mario Draghi suggesting the ECB has prolonged banks' access to unlimited liquidity up to the end of 2016. This hasn't had much of an impact on the single currency this morning as it has swiftly closed the gap from the open and is now relatively unchanged from Saturday's close against the greenback.
A sculpture showing the euro currency sign is seen in front of the European Central Bank (ECB) headquarters in Frankfurt, August 18, 2010.
It is a busy day on the European calendar with a raft of manufacturing and services PMIs on the calendar. Not much of a change is expected from most of these readings and focus is likely to remain on Draghi's comments.
Manufacturing likely to improve
Asia will be focusing on the HSBC flash manufacturing PMI print today which is expected to show an improvement to 49.7. The data will be released at 11.45 AEST and expectations will be fairly high given China's recent stimulus efforts. China data always has the potential to be a big risk mover. With expectations quite high there is always potential for downside risk. Gold will remain one of the key asset classes to watch this week, along with the emerging market complex. The precious metal is sidelined from Friday but remains in a near term uptrend. Dips are likely to be used as an opportunity to buy. Locally, there isn't much data at all this week which means the AUD will be getting its leads from emerging markets and other macro themes. As it stands it seems a relatively tight range around that 0.9400 region will be maintained.
Materials key for the ASX 200
Ahead of the open we are calling the ASX 200 up 0.3% to 5433. Once again the stabilisation in the commodities space will be significant for the materials names. We could continue to see some buying interest in some of the gold and iron ore miners. An escalation of the Iraq situation is likely to keep the energy names bid this week as well. On the company news front we have Metcash's FY earnings and reports suggesting Providence Equity Partners is eyeing a potential bid for Ten Network. Buying in WDC and WRT didn't really last long despite the vote going through on Friday, as both stocks closed well off their highs. These two stocks will be interesting to watch this week.
[Kick off your trading day with our newsletter]
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
Most Popular Slideshows
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- PageSix: Beyonce & Jay Z Union is Not About Love, All About Business & the Brand
Join the Conversation
- South Australia OKs $800M Copper, Gold & Iron Ore Mine on Prime Agri Land in Yorke Peninsula
- Australian Stock Market Report –Midday July 30, 2014
- Shanghai Stock Exchange Will Not Extend Trading Hours
- Long Beach Real Estate Market Is Pricing Out Home Buyers with Limited Budget
- Australian Stock Market Report –Afternoon July 30, 2014
- Samsung Galaxy S5 Alpha Leaks Online: Release Date, Five Features to Wait for New Smart Phone
- Photos of Motorola Moto X+1 Prototype and Specs Leak Online, Release Date, Four Fresh Features Revealed
- Sony Xperia Z3: Release Date, Five Features to Expect from New Android Smart Phone
- Freshly Leaked Apple iPad Air 2 Cases Confirm Touch ID Sensor; Release Date, Limited Specs and Price Listed
- Top Surprising Features Of iOS 8
- Top 4 Reasons Why iPhone 6 Will Hit Big Soon After its Sept 2014 Release Date
- Moto X Android 4.4.4 KitKat Update Guide: Schedule and How to Install