Global stock markets had a strong day on Friday and are looking to start this week in the same fashion. US markets were spurred on Friday by a report that China will look to significantly increase imports from the US in a bid to reduce the trade gap between the two superpowers. The Dow finished the session up 1.38% with the S&P and Nasdaq printing 1.32% and 1.03% up respectively. The dollar continued to drive higher with the Dxy trading around 96.35 as we open the Asian session. Oil also made further topside progress with WTI approaching $54/b and Brent near $63/b
Sentiment should continue to dominate moves across global markets this week as investors maintain a strong focus on the various geo-political issues that are dictating moves. Fundamentals will however come more into focus as we move through the week with some important tier 1 data due for release and two major central bank rate announcements. The BOJ and ECB are both set to keep rates on hold with both economies experiencing a slow down in growth in recent months and therefore investors will be focussing closely on the associated statements and press conferences for trading opportunities.
Looking at today’s trading day and early focus in the Asian session will be on China’s latest GDP figures, with analysts once again looking for more signs of slowing growth. It’s very quiet in terms of economic data releases over the London session and the US markets are closed in observance of Martin Luther King Jr Day. Usually we would be expecting a relatively quiet days trading given the lack of data due and the US holiday, however in the current environment traders won’t be lulled into a false sense of security and will continue to monitor news channels for any changes with Brexit and the US-China trade situation still topping the list of potential market movers.
