- Strong Asian session for shares with JAP225 rising almost 2%
- NZD rises after beating forecasts on employment data
- Busy day ahead with UK and ISM manufacturing data, ADP, DOE and Fed
The Asian session saw another leg higher for stocks as the global rally shows little sign of abating. The JAP225 led the way in rising by almost 2% to move above the 22500 for the first time in more than two decades.
The New Zealand dollar is on the rise after better than expected labour market data. Source: xStation
Elsewhere, the New Zealand dollar is looking to recoup some of its recent losses buoyed by the release of some better than expected labour market data last night. The employment change rose to 2.2% from -0.1% prior (this itself was revised up from -0.2% previously) and the reading comfortably beat forecasts for a 0.8% increase. The unemployment rate also declined to its lowest level in 9 years in what was a solid data set for New Zealand. A drop to 4.6% from 4.8% previously was stronger than the expected 4.7%.
It’s a busy day of economic data ahead which begins with the UK manufacturing PMI at 9:30. The US ISM manufacturing release is due out at 2pm, shortly after the ADP non-farm employment change which is scheduled to rise to 202k from 135k prior and is seen as a leading indicator for Friday’s NFP. Weekly DOE inventories are out at 2:30PM with a draw of 1.5M expected after a build of 0.9M last time out. The Fed rate decision at 6PM is almost unanimously expected to see the central bank keep rates on hold at present levels. The absence of a press conference has led some to conclude that it will be a non-event but with expectations so low there is plenty of scope for a surprise.