Today markets expect numerous impactful events. What will appear as the major fundamental driver of the markets? Let's find out with this 12 September Market moving fundamental events analysis by HotForex.
12 September, HotForex - The global stock market rally continued in Asia overnight, as North Korea jitters continue to ease and risk appetite returns. Hurricane Irma seems to have caused less damage than some feared and while Irma and Harvey will leave their mark on the U.S. economy, markets once again quickly settle down.
The MSCI Asia Pacific Index rose for a fourth day and the Nikkei gained 1.20% so far, with U.K. and U.S. stock futures also moving higher.
Forex Market Update
The dollar carved out new rebound highs during the Asia session. USDJPY continued to lead the way as markets react to a sense of reduced risks stemming from North Korea and Hurricane Irma, with the former having refrained from further missile testing and the latter now having weakened to a tropical storm rating while tentatively proving to be less damaging than feared to the U.S. mainland.
USDJPY logged a one-week high at 109.58, which is over two big figures up on Friday’s low at 107.31. EURUSD clocked a three-session low at 1.1945. The dollar has since come off from its highs, while USDCAD ebbed to a two-session lows just under 1.2100. With a good chunk of the pre-weekend risk-off positioning having been reversed.
Together with the likelihood of further sabre-rattling antics from North Korea as the rogue nation draws nearer to nuclear ICBM capability, we don’t recommend following the dollar rebound, especially in the case of USDJPY. Sterling markets will have UK inflation data today, where we expect the headline CPI rate to lift to 2.8% y/y from 2.6%.
European Market Outlook
The buoyant mood on equity markets will keep European yields underpinned after yesterday’s broad move higher. Yields remain at relatively low levels, and mostly clearly below the average seen over the past three month. The downtrend that has been in place since the middle of July remains intact.
The local calendar today is highlighted by U.K. inflation numbers ahead of the BoE meeting on Thursday and Data this week will be highlighted by the August inflation report (Tuesday).
New Zealand Market moving events
The NZDUSD spiked up around 40 pips on the latest opinion poll results from NewsHub-Reid. As reported by Reuters today morning, with an increase up to 0.7274. The National Party seems to be on the lead with 4% rise up to 47.3%. While Labour Party fell 1.6% down to 37.8%. These results seem to be against the recent increasing popularity we saw for Labour Party. The elections are due on September 23.
Canada Market moving events
Stocks and yields surged as risk appetite came back into play. Canada underperformed in both markets, with the jump in the S&P/TSX only half that of Wall Street and most indexes in Europe. The rise in GoC yields also was smaller than in the U.S. though a little larger than in Europe. The loonie see-sawed but finished little change on the day. Housing starts were the only item on the calendar, and did not have any lasting impact on the market.
IMF’s Lagarde and Chinese Premier Li Keqiang
Christine Lagarde and Chinese premier Li Keqiang met this morning in Beijing. Along with World Bank President Jim Yong Kim and other Heads of global Organizations. As Reuters reported, Chinese Premier stated earlier that:
“There are increased positive factors in the global economy and signs of warming-up in some aspects. But at the same time, the fragility persists and unstable and uncertain factors are still increasing”.
Hence he believes that Free trade can be consider as a good way for resolving any issues raised on recovery procedure. Also, it will help Companies transform and give variety of option to consumers as well. Meanwhile, he also address in his speech, the China’s economy growth. By saying that growth seen in the 1st half will continue. Mrs Christine Lagarde on the other side mentioned that despite the fact that the global economy is recovering, it could easily be derailed by policy uncertainty and the threat of protectionism.
Main Macro 12 September Market moving fundamental events
- UK Inflation data – The headline CPI rate expected to pick up to 2.8% y/y from 2.6% in July. Such an outcome would be consistent with BoE projections, which policymakers see as a temporary period of above-2%-target inflation, having been induced by the sharp depreciation of the pound in the wake of the vote to leave the EU in in late June 2016.The Core PPI expected to pick a bit at 2.5%y/y from 2.4% y/y.
- US JOLTS – NFIB small business optimism and JOLTS job openings are due today and expected to fall at 104.8 from 105.2 and 5.96M from 6.16M respectively
This article about 12 September Market moving fundamental events was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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