In a quiet start to the trading week, global stock markets had a mixed day as investors remained cautious ahead of the crucial trade talks between China and the US. The dollar continued to drive higher with the Dxy gaining for the eight day in a row, now trading just above 97.00. The pound came under further pressure as GDP data disappointed with both the quarterly and yearly number both coming our lower by 0.1%. Commodities came under pressure with Oil hitting its lowest level for two weeks as global growth concerns weighed and traders eyed upcoming risk events in the form of OPEC and EIA market reports.
The same issues that have been driving markets for so long are still top of the list for investor concerns this week but there is some hope that we could get some further clarity by the end of trading Friday. The talks between the US and China are dominating sentiment and investors are hoping for some clear guidance from both sides with the March 1 deadline for tariffs approaching. Brexit concerns continue to weigh on local markets and currencies with the EU standing firm on it’s original deal and Theresa May crossing the channel attempting to find a solution that works for both the EU and parliament, so far little progress appears to have been made and the possibility of a hard Brexit increases. In the US, another government shut down is looming with tensions rising on the political front as we approach the Friday deadline. Investors are hoping that we get some clear guidance from the various parties involved in the above issues that will enable them to make informed trading decisions and as various deadlines approach there is a chance of this occurring this week, although possibly not with the outcomes that many would want to see.
Today’s trading sessions are once again light in terms of fundamental economic data releases but we do have some heavy hitters in terms of central bankers set to speak and this could lead to some significant moves in the market. German Buba President Weidman is first up in the London session followed a few hours later by the BOE Governor Mark Carney. Probably superseding these two much later in the trading day is Fed Chair Jerome Powell as he delivers a speech in Mississippi.