Stocks are once again sharply lower, -2%, led down by health-care and technology sectors, while the US$ has also been sold as traders consider the combined impact of the outcome of Wednesday’s FOMC meeting, as well as on growth in an economy already jittery over trade, political tensions and a possible US government shutdown. The Euro led the EU majors higher as traders noted some progress on the Italian budget issue, after the PM, Conte, struck a deal with the populist leaders to submit a revised budget proposal to the EU. The commodity currencies are steady against the dollar but have lost ground on the crosses, while the Jpy has also made some gains on the back of safe haven demand as stocks headed lower. Elsewhere, WTI is down another 3.5% due to higher inventory figures – as well as the slowing growth concerns – while the metals are up by around 0.5%.
In terms of data, the EU CPI was finalised at 1.9% yy in November, slightly lower than the expected 2.0% and down from 2.2% yy in October, while the Core CPI was finalised at 1.0% yy, in line with expectations.
Tuesday will be busy, beginning in NZ with the Activity Outlook and Business Confidence figures for December, to be followed by the Australian New Home Sales, RBA Minutes. Europe will look to the German IFO Business Climate/Expectations while the US will see the housing data through the November Building Permits (exp 1.265 mio), and Housing Starts (exp 1.234 mio). Have a good day.
Economic data highlights will include:
Tue: NZ ANZ Activity Outlook, Business Confidence, Australian New Home Sales, RBA Minutes, German IFO Business Climate/Expectations, US Housing Starts, Building Permits, Global Dairy Trade Index, API Weekly Crude Oil Stock Inventory
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