Market Brief

The positive sentiment and the natural carry over into risk correlated trades continued in Asian session. Yesterday's strong US new homes sales and today’s news that European bank earnings surprised to the upside, punctuated by Deutsche Bank, which came out with a profit increase of 68%, all added to the furor that risk appetite is still well entrenched. In addition, RBA Governor Stevens stated that (he can) imagine more upside risks to economy to balance out downside risks. Appears domestic downturn may not prove to be a serious one“, which kept risky assets well bid. While the fundamentals story is light, the technical side of markets is looking very interesting. Currently all risky assets are performing well and moving lock-n-step with each other. Equities such as S&P500 keep pushing higher and the S&P500 is now testing 2009 highs at 982, with participants now targeting 1000. Oil is breaking higher and approaching the $70bll, opening the door to $73.40bll, which is the 2009 high. In the FX markets, commodity currencies keep roaring on.. For the AUDUSD and NZDUSD next significant resistance stand at 0.8383 and 0.6945, respectively. The CAD is benefiting from strong market momentum and risk buying for a push to parity. We have noticed a shift from BoC Governor Carney strong words on the Looney appreciation to mixed signals from Cabinet ministers and the BoC statement. Basically, clearing the way for further CAD strength. While Majors are also grinding higher, with EURUSD and GBPUSD approaching major horizontal resistances at 1.4340 and 1.6745 respectively. We don’t see any major obstacles to risk appetite near term, as US and European data along with corporate earning are expected to come inline or above estimates.

Global Indexes Current Level % Change
Nikkei 225 Index10,087.26- 0.01
Hang Seng Index20,577.26+ 1.60
Shanghai Index3,438.37+ 0.09
FTSE 100 Index4,602.40+ 0.35
CAC 40 Index3,385.47+ 0.38
SMI Index5,817.58+ 0.73
DJIA futures9,066.00- 0.04
 World Markets Current Level % Change
Gold955.75+ 0.61
Silver14.07+ 0.21
VIX24.28+ 5.15
Crude wti68.80+ 0.61
USD Index78.39- 0.30
 Todays Calender Estimates Previous Country / GMT
CBI distributive trades, reported sales Jul-12-17GBP / 10.00
S& P/Case-Shiller 20-city home prices , % y/y May-17.9-18.1USD / 13.00
Consumer confidence, index Jul49.349.3USD / 14.00
FRB of San Francisco President Yellen (FOMC voter)----USD / 16.35
Part 2 of town hall-style meeting with Fed Chairma----USD / 22.00