Global stock markets remain under pressure as Geo-Political concerns continue to plague the financial markets and earnings numbers over the last 24 hours have done little to relieve the situation. The US markets did experience a rally late in the day but it wasn’t strong enough to get the indices back into positive territory and the Asian markets look set for another tough session. Risk currency pairs continue to trade to the downside in line with the general market sentiment and the greenback remains attractive as a safe haven despite a drop late in the day in tandem with the stock market rally.
The ongoing Geo-Political factors affecting the market continue to be, well, ongoing. More details are emerging about the murder of journalist Jamal Khashoggi and despite widespread condemnation of the Saudi’s participation and explanation, there also seems to be widespread agreement that economic punishments against the kingdom are not appropriate at the moment. Oil dropped further during the trading day as Saudi Arabia confirmed that it would increase supply to meet any shortfall from Iran sanction affects. Sterling rallied nearly a big figure on positive Brexit news re the Irish border before dropping back off and Euro remains under pressure after the EU met market expectations and rejected Italian budget plans.
Looking ahead to today’s trading and there is a plethora of PMI data out across the globe with investors watching for further signs of slowing growth and then the focus will move over to central banks with the Bank Of Canada largely expected to raise rates 25bps tonight. Traders will be looking at the statement and press conference for indications of the next move in the cycle and this looks set to determine short term Loonie direction. Fed members Bostic and Mester are speaking later in the North American day before the Kiwi Trade Balance numbers kick off the Asian session tomorrow.