Before the open – 18/07
Chinese shares fell last night amid ongoing concerns that the government will extend property curbs and reduce the finance available to developers continued to weigh on Chinese markets.
However, sentiment was boosted somewhat by US Federal Reserve chairman Ben Bernanke’s comments yesterday indicated he will remain dovish on monetary policy and that asset purchases “are by no means on a pre-set course”.
The broadest index of Asian shares outside of Japan was more or less flat after an early fall from highs hit on Wednesday, while the Hang Seng was down around 0.08 per cent and the Shanghai Composite around 0.73 per cent.
The Nikkei again bucked the trend, up around 1.32 per cent on the back of a slightly weaker yen from Bernanke’s comments. But investors are waiting to see what happens in next week’s Upper House elections, where prime minister Shinzo Abe is expected to win control of both houses – giving his Liberal Democrat party-led coalition its strongest hold on power since 2007. Abe has promised legislation to reform business regulation and open Japanese markets to greater competition.
The FTSE is expected to open flat or down this morning ahead of retail sales results, forecast to have grown by around 1.7 per cent in the year to June following 1.9 per cent annual growth the month before.
UK companies posting numbers today – Sports Direct, 3iii & LSE – European opening reflective rumination – FTSE -9, DAX -5, CAC -6
— David Buik (@truemagic68) July 18, 2013
Morning all. #FTSE called FLAT this morning. Seen some #USD strength, #AUDUSD down 60 ticks, #EURUSD down 26. #USDJPY above 100.00
— FuturesTechs Updates (@FuturesTechs) July 18, 2013
Key events today:
09:00: Eurozone current account
09:30: UK retail sales
13:30: US jobless claims
13:30: Westminster Hall debate on shale gas development
15:00: Federal Reserve chairman Ben Bernanke speech
15:00: US CB leading indicator
15:00: Philadelphia Fed manufacturing survey
Second Ashes Test begins at Lord’s
British Open golf tournament begins