A strong rally in Asian markets spreads optimism

Monday, July 28, 2014

Asian equity markets rallied strongly overnight with the Hang Seng Index climbing more than 200 points (0.9%) towards 24450. The Nikkei also posted strong gains, breaching above 15,500, rising more than 0.45%. Profits earned by Chinese industrial companies surged by 17.9% in June to 588.08 billion Yuan ($94.98 billion) compared to a year earlier, rising largely from an 8.9% increase in May, the National Bureau of Statistics reported over the weekend.

Hang Seng Index

HSI Index (Hong Kong Hang Seng I 2014-07-28 09-00-20

The US equity markets ended lower on Friday as persistent tensions in Gaza continue to weigh on market sentiment. The USD held near a six-month high against a basket of currencies, as investors turned bearish on the euro.

USD Index

DXY Curncy (DOLLAR INDEX SPOT)   2014-07-28 09-01-04

Energy: Brent front month futures slipped below $108 per barrel in early trading this morning as tensions between Israel and Hamas Islamist militants eased slightly in Gaza. The WTI front month contract has slightly declined below $102 per barrel, awaiting the release of key US economic indicators.

Coffee: Brazil's coffee harvest may decline below 40 million bags for 2015, possibly hitting its lowest level since 2009, according to a crop survey, the National Coffee Council reported on Friday. ICE Coffee Sept futures have rallied strongly since 15th July, reaching a recent high at 181.20.

ICE Coffee

KCU4 Comdty (COFFEE 'C' FUTURE S 2014-07-28 09-01-39

Today, the main focus will turn to the release of the US Markit composite PMI flash index and Markit services PMI flash as well as Pending Home sales data for June and the Dallas Fed manufacturing business index. The release of key US economic indicators will set the tone for the day, giving some direction to the US dollar.  

 

Events for today:

 

1445

US

Jul

Markit Mfg PMI Flash

1500

US

Jun

Pending Home Sales

1530

US

Jul

Dallas Fed Manufacturing

 

All times UK Local Time

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