Asian markets lower this morning, with sentiment hurt by a softer than expected manufacturing survey out of China. The Shanghai composite continues its underperformance trading 1.4% lower and now only 40 points away from the 2000 level. Risk currencies such as the Aussie dollar come under renewed pressure on this risk off phase.
According to sources, the Spanish government is looking to use the last of the EU bailout package destined for the banking sector in an attempt to avoid a full sovereign bailout. Look out for PMI data across the Eurozone this morning, European futures are indicating around 60bps lower.
In the US, Fed’s Fisher said last night that he argued against more accommodation at the last policy meeting, adding the economy doesn’t need more liquidity. Headline data includes jobless claims and leading indicators.
Philip Ball | Sales and Trading