Something of an air of disappointment initially on Wednesday as the long awaited break of 1.2625 on EUR/USD failed to produce any real follow through.

US indices bounced toward the end of the session to close higher for the S&P 500 and Nasdaq Composite and flat for the Dow Jones. The auto, retailing and materials sectors led this late market reversal.

Calmer markets in Asia as EU Summits comments flowed through after yesterday's selloff in EUR to 1-year 10-month lows of 1.2546. Also reports of German paper piece that "Greek exit is a done deal" making the rounds. Good to watch for details in Europe/ UK.

The HSBC Flash China Manufacturing PMI was 48.7 in May vs April’s final reading of 49.3. HSBC commented: «Manufacturing activities softened again in May, reflecting the deteriorating export situation.

This calls for more aggressive policy easing, as inflation continues to slow.

 

Posted by Mike Moloney | Account Executive