Asian markets slightly higher for choice, as all eyes await commentary out of the ECB. Worth noting that Goldman have lowered their forecast for China’s GDP for this year to 7.6% from 7.9%, aswell as lowering their 2013 forecast. In corporate news Sharp Corp continue their slide falling 6.2% after having their short-term ratings cut by Moody’s, Brilliance China Automotive fell 9% after announcing a controlling shareholder announced cutting their holding, and Qantas Airways rose over 6% after ending their long relationship with British Airways in favour of Emirates.
ECB’s rate decision and rhetoric will be key, following indications yesterday that Draghi will launch an unlimited sterilized bond buying program. European futures are looking around 40bps better this morning and the EURUSD pair is stronger again this morning, with a major technical level being seen at 1.264.
Out of the US today we have ADP employment data ahead of the crucial non-farm payroll numbers tomorrow.
Philip Ball | Sales and Trading