Here's A 20-Second Guide To What Aussie Traders Will Be Talking About This Morning

Getty/ Sergio Dionisio

Here’s the morning market update, with some cautiously good news on the global front and the ASX.

– Labour Day in the US so that part of the night was fairly quiet but the preceding 16 hours were interesting insofar as they gave another glimpse into what continues to be a healing global economy. Yesterday’s HSBC Chinese manufacturing PMI printed 50.1 and then even though a number, or most, PMI’s in Europe actually missed expectations they were stronger than the previous month.

So stocks in Europe were ebullient and rallied strongly following Asia’a lead with some big rallies. The FTSE rose 1.45%, the DAX was 1.74%, the CAC and FTSEMIB were both up 1.84% while stocks in Madrid were 1.68% higher.

– The ASX has broken higher and the ASX will print stronger this morning.

– On FX Markets yesterday the Aussie (0.8976) got a big lift from the Chinese data over the weekend early doors and then kicked on with it once the HSBC PMI was out, but also on the back of the huge rise in Building Approvals which are running now at a +28.3% annual rate. The high for the Aussie overnight was 0.9013 as traders clearly just pushed until they found the sellers and the Aussie sits mid-range for the day.

– Elsewhere USDJPY is up more than one big figure at 99.32 as the fear bid washes out of the Yen while Euro (1.3197) slipped back under 1.32 and GBP (1.5545) is mid-range on the day.
On Commodity markets, Gold was slammed in early Asian trade yesterday (breaking my heart for being too cautious) and fell into the support zone above $1370 before rallying back toward the $1400 zone. I’m short, but it has hardly moved for hours. Nymex crude slipped back as well falling 0.77% to $106.82 Bbl.

– In other potentially market moving news, the head of NATO and the French PM have both come out and said they have conclusive evidence that the Assad regime used chemical weapons. Assad continues to deny it and in an interview with Le Monde, said that France and the West would face repercussions from an attack. France won’t act alone and tensions are going to be high in St Petersburg this week.

– On the data front, it is a big day for data with retail sales in the UK, Australia’s current account and retail sales, and then at 2.30pm EST the RBA will release its decision after the monthly board meeting. Chinese non-manufacturing PMI is out as is EU producer prices, Brazilian IP and the US catches up with the release of the Markit PMI and the ISM.

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