- A drop in Oil prices of approx. 4% weighed on stock markets overnight. Crude trading as low as $50.52 a barrel. Crude stocks fell 1 million barrels, less than anticipated. Concern now around whether OPEC cuts were enough.
- DOW (-0.58%) biggest hit with a 120 point drop as a result of weak IBM sales, shares selling off 5%. Strong Morgan Stanley results helped cap S&P500 (-0.17%) losses to 4 points.
- US equity markets looking vulnerable to further weakness as the Trump trade loses steam. This likely to put pressure on USD/JPY as it continues to range trade around the 108.15 – 109.30 levels.
- The first of two rounds in the French presidential elections is scheduled for Sunday. Investors keenly watching the performance of far-right candidate and Frexit supporter Marine Le Pen, and Jean-Luc Melenchon. Poor showings from both candidates could see the Euro strengthen.
- Gold slid to $1,279 however support expected in the metal as uncertainties over elections and geopolitical tensions remain.
- GBP/USD retraced 30% of its election move range overnight. The pair experienced a 400 pip rally on Tuesday night after U.K. Prime Minister Theresa May called a snap vote for June 8. Support 1 at 1.2700, support 2 at 1.2600.
- Aussie dollar continued its sell off overnight, trading to 0.7491 as it eyes the 0.7473 support level. Falling Iron Ore prices, concerns over housing and employment from the RBA and rates remaining low all resulting in weakness.
- New Zealand q/q CPI came out this morning at 1.0%. The biggest inflation print since Mid-2011. NZD/USD rallied 45 pips off the news.
Today’s Economic calendar (AEST)
- 8:45am NZD CPI q/q
- 10:30pm Philly Fed Manufacturing Index
- 10:30 US unemployment claims
- 1:30am BOE Gov Carney Speaks
- 3:15am Treasury Sec Mnunchin Speaks
