Markets are trading with a negative bias so far this morning, with a lot for markets to think about.
Equity futures have taken a push lower this morning with major benchmarks trading lower apart from CN50 and HK50 which is trading higher (all eyes on China markets opening up tomorrow after the bank holiday).On the FX side, safe haven currencies like the JPY, USD and CHF are leading the pack higher while high beta’s like the AUD and NZD are lading to the downside along with the GBP.Commodities are mostly lower, apart from Oil which has extended on its recent gains trading to $76 per barrel at the time of writing.Bonds is the interesting, as we are not seeing safe haven inflows into bonds as the move is driven by a repricing in Fed cut expectations as well as the upside in inflation expectations (driven by higher oil prices).
It’s a very quiet session on the economic calendar both today and tomorrow so sentiment will likely be one of the main drivers for flows.
This article was written by Arno V Venter at www.forexlive.com.
