12.05.14

Good morning,

A quiet start to the week with regards data releases. Australia awaits an expected tough budget tomorrow as Treasurer Joe Hockey has hinted at tax increases. There are also expectations that there will be an increase in fuel excise, but also that the government are expected to spend AUD40B on roads, which Hockey, speaking on Sunday said; would mean tens of thousands of new jobs, and increase investment in construction as the mining boom winds down. Japanese Eco Watchers Survey results show a reading of 41.6, below the 45.2 which had been expected.

The NIKKEI was trading at 14149.52 down 50.07 points, a decrease of 0.35%

European markets today will see the Swiss Retail Sales figures release, with a 2.3% figure expected for March. Wednesday and Thursday will most likely be the main fundamental data movers in Europe as the Consumer Price Index figures will be released for Germany and the Euro Zone are due out. British Unemployment data is expected on Wednesday; with the Bank of England Quarterly Inflation Report also out later in the day. EURUSD was trading at 1.3768 this morning, off 1.3993 at one point during Mario Draghi’s speech on last Thursday.

The FTSE100 closed at 6814.57 down 24.68 points or 0.36% while the DAX closed at 9581.45 down 25.95 points or minus 0.27%

The US releases their Monthly Budget Statement for April this session, and Philadelphia Federal Reserve President Charles Plosser gives a press conference as to how the Fed observes the current US economy and the value of USD. CABLE was trading at 1.6875. GOLD was trading at $1289 per ounce with USOIL trading close to $100 per barrel. Later this week we will see Retail Sales figures, Consumer Price Index data, jobless figures and housing start figures among others, but today will most likely be quiet on the data front across the Atlantic also.

The DOW closed last week at 16583.34

Hope you all have a good week.