Markets were reasonably quiet overnight, with the US Martin Luther King Day holiday and no release of major data taking place. European markets consolidated after Friday’s losses as the Euro50 fell 0.6% while the DAX tipped 0.2% lower. Evidence remains that global growth concerns and oil price weakness continue to weigh heavily on investor minds.
China concerns continue to dominate headlines as GDP and Industrial Production data will be released at 1:00pm AEDT today. ANZ expect Q4 GDP data to come in soft at 6.8%, missing the projected GDP target of 7%. These December figures are important in determining the momentum of the Chinese economy as it finished 2015. Recent equity market devaluations combined with a continued slowdown in China’s economy could see further monetary policy easing by the PBoC. If data released varies greatly from estimates, investors should expect increases in market volatility.
In Commodities, Brent hit fresh twelve year lows at USD27.70/bbl while WTI prices held below the USD30/bbl level. Investor sentiment appears to be driving oil prices as concerns heighten over Iranian oil flooding the market.
Trading Quote of the Day:
“Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.”
– Sir John Templeton
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