Morning Briefing Global Stocks
$DIA, $DAX, $DJSH, $N300, $NSEI, $BSESN
Commentary: Sing. closed for holiday. PE
Thin Holiday trading in Singapore and the rest of Asia today suggests liquidity will be tight. But, with headline risks growing, traders will be focused and not far from their desks.
Global equity sentiment is a bit shaky as concerns over rising commodity prices and higher interest rates continue to suggest lower corporate margins for the remainder of Y 2018.
Plus trade concerns and uncertainty over Iran nuclear policy continue to dampen risk on sentiment.
China says it will not be a pushover when it comes to trade discussions with US, while Israeli Prime Minister Benjamin Netanyahu has accused Iran of lying about its nuclear intentions and ratcheting up geopolitical concerns in the process.
The USD continued to make headway in thinly traded markets ignoring softer US data prints and lower US Treasury yields.
Traders are reling on a favorable USD bounce on the back of the mass of Top-tier data later this week with ISM, and of course, NFP/AHE.
USD traders have been reacting favorably to the strengthening US data flow relative to that from other major economies and in particular the EU given that expectations on the EU data landscape had been running high amongst investors and that faded last week.
Given the massive short positions in US Treasuries, and as evidenced by the lack of following through above 3 % 10 yr T-Note, traders are looking for reliable economic data to support the fundamental economic landscape. If yields were really driving the recent USD strength, the near term fate of the Buck would most likely hang on the balance of this week US economic data.
We wait, we see.