Asian share markets began the week on a cautious note after soft economic data from China and Europe added to evidence of cooling global growth and reinforced anxiety over the broadening impact of international trade frictions. The market’s retreat also reflected a worsening global economic outlook, with the latest evidence of slackening momentum coming from China and Europe. China’s economy has been losing momentum in recent quarters as a multi-year government campaign to curb shadow lending put increasing financial strains on companies in a blow to production and investment. Investors are now looking to a major speech by President Xi Jinping on Tuesday to mark the 40th anniversary of China’s reform and opening up.
In main currencies, EUR/USD could continue to draw bids, sending the pair lower toward the recent low of 1.1215 if the global equities remain risk-averse on mounting global growth fears. Regarding GBP/USD, heads into the new trading week on the wrong end of 1.2600, trading into recent lows as Brexit continues to hang off of the Pound, dragging the GBP into the downside as cracks continue to widen as the UK barrels into a messy Brexit showdown in March.
In commodities, Gold will likely take a beating if the Fed sounds more hawkish than expected, squashing bets of a Fed rate hike pause in 2019. Oil continues to trade towards the downside as investors remain unconvinced about impending OPEC production cuts as the US continues to overproduce crude barrels at an incredible rate, and the broader market remains well-supplied with a glut of barrels stuffing into supply lines much faster than demand can hope to eat them up.
For today there are no high impact news, however worth to attend the Italian Trade Balance news, German Buba Monthly Report and Great Britain’s CBI Industrial Order Expectations.