European Open: Flash PMI’s and Canada inflation report in focus

Asian Indices:

Australia's ASX 200 index fell by -12.7 points (-0.17%) and currently trades at 7,338.80
Japan's Nikkei 225 index has fallen by -37.31 points (-0.14%) and currently trades at 27,494.63
Hong Kong's Hang Seng index has fallen by -207.23 points (-0.99%) and currently trades at 20,679.73
China's A50 Index has fallen by -31.48 points (-0.23%) and currently trades at 13,679.43

UK and Europe:

UK's FTSE 100 futures are currently down -6.5 points (-0.08%), the cash market is currently estimated to open at 8,007.81
Euro STOXX 50 futures are currently down -6 points (-0.14%), the cash market is currently estimated to open at 4,265.18
Germany's DAX futures are currently down -5 points (-0.03%), the cash market is currently estimated to open at 15,472.55

US Futures:

DJI futures are currently down -130 points (-0.38%)
S&P 500 futures are currently down -44.75 points (-0.36%)
Nasdaq 100 futures are currently down -17.75 points (-0.43%)

The RBA minutes firmly backed a 25bp over a 50bp, which suggests aggressive hikes are most likely in the past – although there is still room for at least two more hike(s)
Australia’s private sector contracted for a fifth consecutive month according to the latest PMI report, with services mostly weighing on the broader economy
Japan’s flash manufacturing PMI contracted at its fastest pace in 30 months
NZ producer prices (both input and output) were much softer than expected, which plays further into a 50bp RBNZ hike over a 75bp
View our RBNZ cash rate preview livestream recording for a complete rundown

Flash PMI’s and Canada inflation report in focus:

Flash PMI data for Europe take up the baulk of the data in the early European session, with a ZEW economic report also scheduled for 10:00 GMT. Canada’s inflation and retail sales report is the main event at 13:30, ahead of US PMI data at 14:45. Given trading floors across the US and Canada reopen today after a long weekend, we’re hopeful volatility will pick up.

CAD/JPY 4-hour chart

With a Canadian inflation and retail sales report on tap, CAD pairs are in focus – and one of the more interesting pairs is CAD/JPY. The 4-hout chart remains within an uptrend but is trying to revert to its trend after a brief pullback and consolidation. Strong inflation and retail sales should keep bets alive for another BOC hike and likely send CAD pairs higher, and even more so if oil prices remain under pressure.

The pullback found support around the early December lows / late December highs and weekly pivot point, and we’re keen to seek bullish setups with any low-volatility retracement towards the said support zone. 100 is likely to provide resistance along the way, a break above which brings the 100.28 highs and weekly Q into focus.

Economic events up next (Times in GMT)

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.