Good start to the week as Chinese manufacturing data beats
After a quiet week last week due to some US holidays, this week is a critical week for fundamental data and some FX prices hold at decent levels too. Also, many eyes will be on President Trump's visit to London as the NATO summit begins this week and he is also set to meet with China's Xi for talks. Today we get Manufacturing PMI's worldwide and it has started off well as the Chinese number beat expectations of 49.5 and printed in expansionary territory at 50.2.
In FX markets AUD and NZD were the biggest movers overnight. NZD just pipped its counterpart as trade data rose by 1.9% in Q3, showing the economy faring better than its major counterpart.
With this good news, copper has started the week on the front foot rising 0.30% and trading at $2.65/lb at the start of the trading week. Price action will be dominated by the trade talks so headline watching will be key.
Oil also received a boost off the news but the key theme in oil markets is the new harder stance by Saudi Arabia. On Friday spot WTI fell 4.84% after the new oil minister stated they will not over comply with cuts to subsidise other OPEC nations who faile to comply.
Gold has dropped back below $1460/oz once again as the risk appetite improved overnight. Indices in the Asia Pac area performed well overnight and the Nikkei 225 rose over 1%. The greenback is also marginally higher too.
Today we will be looking out for manufacturing PMI numbers from around the globe and comments from ECB’s Lagarde, Rehn, Holzmann.