22 Apr 2015

Wednesday 22nd April: European Open Briefing

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Global Markets:

  • Asian stock markets: Nikkei up 0.90 %, Shanghai Composite gained 1.75 %, Hang Seng rose 0.10 %, ASX declined 0.70 %

  • Commodities: Gold at $1199 (-0.35 %), Silver at $15.93 (-0.50 %), WTI Oil at $55.96 (-1.15 %), Brent Oil at $61.61 (-0.95 %)

  • Rates: US 10 year yield at 1.907, UK 10 year yield at 1.571, German 10 year yield at 0.108

News & Data:

  • Australia CPI 0.2 % q/q, Expected: 0.2 %, Previous: 0.2 %

  • Australia CPI 1.3 % y/y, Expected: 1.3 %, Previous: 1.7 %

  • Australia Trimmed Mean CPI 0.6 % q/q, Expected: 0.6 %, Previous: 0.6 %

  • Australia Trimmed Mean CPI 2.3 % y/y, Expected: 2.2 %, Previous: 2.2 %

  • Australia Weighted Mean CPI 2.4 % y/y, Expected: 2.3 %, Previous: 2.4 %

  • Australia MI Leading Index -0.3 %, Previous: 0.1 %

  • Japan Trade Balance ¥229bln, Expected: ¥50bln, Previous: -¥425bln

  • Japan Adjusted Trade Balance ¥0.00trln, Expected: -¥0.41trln, Previous: -¥0.57trln

  • Japan Exports 8.5 % y/y, Expected: 8.5 %, Previous: 2.4 %

  • Japan Imports -14.5 % y/y, Expected: -12.8 %, Previous: -3.6 %

  • ECB Demands 50% More In Greek Bank Collateral For Emergency Loans

  • Japan stocks at 15-year peak, oil down as Saudi ends Yemen air campaign – RTRS

  • Trader arrested over role in 2010 'flash crash' – RTRS

  • Asian Stocks Climb to Highest Since ’08 as Aussie Jumps on CPI – BBG

  • China’s Stocks Rise to Seven-Year High on Stimulus Speculation – BBG

Markets Update:

The Australian Dollar gained overnight after the release of the most recent inflation data. While the headline number arrived in line with expectations, the trimmed mean CPI beat expectations slightly. While most analysts think that this will not change the RBA’s stance and the possibility of a rate cut next month, it was enough to cause some short covering in AUD/USD and push the pair to a high at 0.7770. Meanwhile, AUD/NZD rallied from 1.0060 to 1.0130 after the data release. There is a huge option expiry (A$3.1bln) tomorrow at 1.02 at the NY cut (1400 GMT), which might attract price if the pair is able to extend gains closer to the level.

Upcoming Events:

  • 09:00 BST – Italian Industrial New Orders

  • 09:00 BST – Italian Industrial Sales

  • 09:30 BST – Bank of England Meeting Minutes

  • 10:00 BST – Italian Retail Sales (0.3 % m/m)

  • 12:00 BST – CBRT Rate Decision (7.25 %)

  • 15:00 BST – US Existing Home Sales (5.03mln, 3.0 % m/m)

  • 15:00 BST – Euro Zone Consumer Confidence (-2.8)