The global stock markets continue their grind to the topside overnight with the US indices once again printing new highs, the S&P notably opened the day above 2900 for the first time. The currency markets had a relatively quiet day with the dollar mixed across the board as the market looks for it’s next major catalyst and the 10 year treasury yield moved back towards 2.9%. The excitement from the US-Mexico trade deal quietened down a touch as the market evaluated the details and still awaits the Canadian input, with the Peso dropping back off yesterdays gains.
EM’s were also relatively quiet, although the Turkish Lira hit the headlines again as Turkey advised that it will look to install more military infrastructure in northern Cyprus. With diplomatic issues between Turkey still very much front of mind with the market, this could be seen as and inflammatory step in the relationship and could bring about retaliatory measures from the US. The Lira took another hit on the day and investors will continue to monitor the situation and the currency levels closely.
Looking ahead at today’s trading and we’re set for a mixed open for Asian markets with the major current risk and trade themes set to continue to drive market moves. It’s quiet in terms of fundamental data releases through the first couple of sessions of the day but we do have some significant tier 1 data during the New York session in the form of the Quarterly Prelim GDP data out of the US. Market expectation is for a 4.0% print and investors will as usual be monitoring the number closely.