Global markets are set to start the week on the front foot after a strong day on Friday and positive data out of China over the weekend. Equity markets finished the week well as they closed out their strongest quarter since 2009 and the optimism was boosted by better than expected Chinese PMI numbers over the weekend. The dollar had a whippy day on Friday but has opened the week still on the front foot with the Dxy trading around 97.25 on the Sydney open. The Canadian dollar appreciated strongly during the later session on Friday as GDP and RMPI data surprised to the topside with the move aided by buoyant oil prices. Commodity markets closed the quarter nicely bid, having had their best result since 2016, WTI closed the week over $60/b and Brent finished up near $68/b again, Iron Ore and Copper are both pushing back towards yearly highs and Gold is holding up despite a sharp correction over recent sessions.
Once again it looks like being a busy week for financial markets with a plethora of tier 1 data due out as well as the ongoing Brexit and Trade issues to take into consideration. There are several key pieces of US data due out this week culminating in the latest Non-Farm Payroll numbers and investors will be hoping for strong results to allow further topside momentum into the start of Q2. Brexit will continue to be a huge issue for both UK and European markets in the next couple of weeks as we approach the next deadline of April 12 and traders will be bracing for further volatility as it rolls on and all interested parties attempt to come to some sort of resolution.
Looking ahead to today’s market action and the initial focus in Asia will be on China with the release of the latest Caixin Manufacturing PMI data, with investors again hoping for strong numbers after this weekend’s releases. There is a raft of PMI numbers out in the European session and traders will be watching these closely ahead of the Euro Flash CPI estimate. The attention will move to the US on the New York open with the release of the latest Retail Sales data due early in the session, expect also any updates on the recent trade talks to also influence direction although investors are looking for more than just rhetoric from either side to assist in increasing sentiment and positive flows.