Morning Update – 05/10/15 – 09:12:12

October 5, 2015 by

Morning all.. Wall St had a wild ride after the poor NFP data in the US Friday and after initial steep losses , finished the day up 1.4%. Asia has also had a good session with the Nikkei up 1.55% and HK up 1.3%. There seems to be a feeling that the data from the US was so weak that a Fed hike is now becoming less likely and priced further down the calendar. The next couple of sessions are critical for stocks as any weakness now may see many throw in the towel. What is not known is whether the US or global economy is weaker than first thought and if it is then stocks may yet suffer as earnings get hit. S&P futures were unchanged overnight, oil and commodities were firmer as the dollar fell. US yields remained soft after falling in the US session. In FX, NZD and AUD outperformed, the former extending gains by 0.6% to 0.6475, with the latter up 0.4% to 0.7070. AUDNZD weakened towards 1.093, ahead of its important 1.09 technical level. EUR reverted back to 1.1230 after an attempt to rally in Asia trading failed to gather momentum. USDJPY, meanwhile, was flat at 120.00. Japan’s September Nikkei services PMI edged down to 51.4, from 53.7 in August. As a result, the Nikkei composite PMI also weakened to 51.2 from 52.9 previously. Also, Japan’s labor cash earnings rose 0.5% year on year in August, marginally below the consensus estimate of 0.6% and revised prior reading of 0.9% in July. Real cash earnings climbed 0.2%, below the estimate and prior reading of 0.5%. This morning the focus will be on Services PMI data across Europe and Swedish Industrial Production and EU Retail Sales.. Good luck..