Asian markets higher again this morning, in further anticipation of further stimulus out of the US and China. The Nikkei the clear outperformer, after Japan released machinery orders data showing a month on month increase of 4.6%, South Korea also acted well in anticipation of policy makers cutting rates at their meeting tomorrow. China’s Shanghai composite was the laggard falling around 30bps after Morgan Stanley followed the leads of Goldman and Macquarie in cutting the country’s 2012 growth estimates.
In Europe, the German constitution court will vote on the ESM facility this morning, aside from that look out for UK employment and Italian industrial production data along with Dutch elections. European equity futures are looking around 20bps firmer in early trade.
The Feds 2 day FOMC meeting begins today, at which there are some expectations of a fresh asset buying program. Egan Jones reaffirmed the US’s AA rating with a negative outlook. US futures are around 20bps firmer this morning.
Philip Ball | Sales and Trading