It was a sea of red for global equity markets yesterday as investors remained cautious on growth and poor earnings data from tech firms added to the pressure. The Asian markets look set to start the day well to the downside as the Nasdaq fell over 1.2% after Tencent’s first profit drop in 10 years. As expected haven trades were favoured across the board and the greenback remained strong with the Dxy peaking just under 97.00 earlier in the day, Yen also came back strongly during the course of the day and now sits down nearly a big figure against the dollar and is hitting fresh lows against the Aussie.
Investors will once again be keeping a close eye on Emerging Markets currencies and looking for signs of further depreciation and volatility, especially with the market sentiment firmly set towards the downside at the moment.
Traders in Australia will be paying close attention to the key jobs data this morning with market expectation sitting at an increase of 15k new jobs and the unemployment rate remaining stable at 5.4%. Any disappointment in the date will see further pressure on an Aussie dollar that is already sitting at yearly lows on the back of global concerns, if domestic data turns to the downside then we could see the move south gain pace.
Later in the day the focus will move to the UK as it releases its latest Retail Sales numbers with an increase of 0.2% firmly expected, Brexit issues are still set to dominate sterling moves in the short term but investors will be keeping a keen eye on the fundamental data as well. There’s little out in terms of economic data in the US session but the news wires will be in full flow in the current environment and expect them to provide the next catalyst for significant market moves.