– The US is out for the Martin Luther King holiday and if you ever needed proof that 8 hours of trade in the US sets the global agenda daily then last night’s lack of action was it.
– Europe was dominated by company-specific news with the surprise announcement by Deutsche Bank of a loss for Q4 2013 hitting the stock hard – it ended the day down 5.4%. Also weighing on the bank was a Wall Street Journal report that Germany’s banking regulator is investigating Deutsche as part of the global currency rigging probe.
– At the end of play, the FTSE was 0.11% higher and the CAC and DAX were down a little with losses of 0.1% and 0.28% respectively. In Milan stocks eked out a 0.02% gain and Spanish stocks fell 0.11%.
– Locally on the ASX, the SPI 200 fell 7 points overnight to 5249 bid. That is still a great performance given the weakness yesterday before the Chinese data printed reasonably well and lifted the ASX and Asian stocks from their lows. On the bond boards, the 3’s lost 3 points to 97.11 (2.89%) bid and the 10’s are down 1.5 points at 95.96 (4.04%) bid.
– On Forex markets, the Chinese data really turned around trade in Asia yesterday, with the Aussie under intense pressure making a 3-year low at 0.8756 before recovering to 0.8801 this morning. The yen was also stronger prior to the number but it reversed course subsequently and sits at 104.17 this morning. The euro had a better night and is back up at 1.3565 from the low yesterday at 1.3506. GBP sits at 1.6434 and the Swiss franc is at 0.9091.
– Even with the MLK holiday, some commodity markets were open electronically. Nymex Crude was down 0.69% at $93.72, Gold rose another $5.50 to $1257.20 while Copper lost another cent to $3.37 lb. Bitcoin never sleeps and sits at $959 this morning.
On the data front, it is a fairly quiet 24 hours with ZEW economic sentiment survey the only major release in Europe, while the Redbook index will be released in the US.