RBA confirm dovish outlook while stocks rise overnight
Equities markets in the Asia Pac region managed to recover following a weak lead from the US following earnings data. The ASX was supported by a dovish RBA who stated "members agreed that the likelihood of a scenario where the cash rate would need to be increased in the near term was low.", AUD/USD was also affected and fell 0.33%. The Shanghai Comp was the outperformer rising 1.95%, while the Nikkei 225 gained 0.24%.
Copper once again is on the rise this morning and this comes despite rising LME stockpiles and a firmer US dollar yesterday. Sticking with base metals Iron Ore is still on the rise due to supply concerns as Brazillian stockpiles drop following mine closures in the region.
WTI has taken a fall as some analysts noted a weak start to earnings season in the US and believe that will impact demand. Spot WTI trades at $63.22/bbl this morning, falling 0.42% overnight and this evening we look forward to the API inventory data release.
Gold continued to fall but has now met some support at the $1282/oz area. If earnings data continues to come in weak we could see some more support but as the works central banks turn dovish stocks seem to be the asset of choice.
Today we are looking out for UK jobs data, German ZEW, US industrial production, NZ CPI, weekly API's and comments from ECB's Nowotny and Fed's Kaplan