On Sunday, we saw the release of some weak Chinese data (exports fell 6.9% whilst imports 18.8%) resulting in a high trade surplus of $61.64bn. The Shanghai Index closed Monday with a strong gains (+57pts +1.6%). The Nikkei also performed well in Tokyo (+377pts +1.96%) although given the slight reversal in the currency, the futures market in the U.S. has seen a lot of that rally handed back! Currently, the Nikkei Futures market is down 250pts as all U.S. indices trade heavy. European indices were all lower on the day with declines of over 1.5% for the DAX and CAC, whilst FTSE lost just 1%. The U.S. market joined the trend early and saw the DOW down over 250pts at one stage in the day. However, towards the close buyers found their courage and we managed to recoup much of the day but still saw all indices closing down around 1%.
The USD lost a little ground today after Friday’s impressive run when the DXY closed down -0.16% at 99.10. GBP and the EUR made a dent today, but these gains were neutralized as emerging market currencies lost yet again. It was in LATAM that dealers were referring to today where we saw losses in Brazilian Real (-0.8%), Columbian Peso (-1.35%) and Argentinian Peso -1.75%). The Rouble also lost a little more value again in late trading (-0.55%) but I am sure our friends in Moscow will not loose too much sleep over 0.55%.
Commodities had a volatile day today which resulted in wheat, sugar and rice all losing between 3% and 4% on the day. Their was talk of this possibly being related to Goldman Sachs closing its famous BRIC’s Fund (http://www.cnbc.com/2015/11/09/emerging-markets-funds-by-the-numbers.html) but maybe this has more to do with the global close down finally being felt!
Gold traded in a very narrow range today closing almost unchanged on the day. The same could not be said for silver, copper or platinum where losses of -1.2%, -0.67% and 2.7% were seen.
Overnight, China will see CPI and PPI where the markets are expecting 1.5% and -5.8% respectively. It is not until the end of the week when will we see some important economic data releases from the Europe or the U.S.
