UK Services PMI falls to 2013 lows

Today’s Economic events

• Australia AIG services index 51.8 vs. 48.4 previously
• New Zealand ANZ Commodity prices m/m 0.40% vs. -2.30% previously
• Australia trade balance -2.94bn vs. -3.22bn
• China Caixin services PMI 51.2 vs. 52.6
• Spain services PMI 54.1 vs. 53.9
• UK Halifax HPI m/m -1.40% vs. 0.10%
• Italy services PMI 53.8 vs. 52.7
• France services PMI 49.2 vs. 49.8
• Germany services PMI 55.3 vs. 55.1
• Eurozone final services PMI 53.3 vs. 53.0
• UK services PMI 52.7 vs. 55.1
• Eurozone retail sales m/m 0.40% vs. 0.10%
• US Weekly unemployment claims 278k vs. 271k
• US revised nonfarm productivity q/q -2.20% vs. -3.20%

Coming up

• US Final services PMI
• ISM nonmanufacturing PMI

The Asian markets notched another day of gains with the Nikkei225 gaining 1.28% and the Shanghai Index up 0.36% for the day. The gains came about as the previous session saw a better ADP payroll print and Oil price rally which shrugged off a massive inventory buildup of 10.4 million. The Yen was considerably weaker as USDJPY continued to push higher following yesterday’s late declines to 113.33. For the day, The Dollar is up 0.29% against the Yen after a brief test to 114.145 saw a lower high being formed. Prices likely are decline here, with 113.335; yesterday’s low coming into focus.

The Aussie continued to surge as data from Australia today showed the services index rising to 51.8 up from 48.4 previously marking a turnaround in the services sector. Trade balance numbers showed a decline in the trade deficit which improved to $2.9 billion in January from $3.5 billion a month ago. The declines in trade deficit came on a 1.10% monthly jump in exports and a decline in imports.

AUDUSD is up 0.54% for the day with prices testing December 2015 highs near $0.734. The Kiwi on the other hand was also faring better as NZDUSD gained 0.39% for the day and marks a second day of gains following the dip to 0.6574 earlier on Monday.

In Europe, the services PMI numbers were due. Overall, the Eurozone services PMI was softly above estimates at 53.3 against forecasts of 53.0. The Euro was seen pushing higher in today’s session following a steady decline in prices over the past few days. EURUSD briefly tested the lows of $1.083 before reversing the losses.

In UK, services PMI data was disappointing falling to March 2013 lows at 52.7, below forecasts for an increase to 55.1. The data is indicative of a slower start to 2016 with the first quarter estimates likely to be lower. The British Pound however shrugged aside the disappointing news as GBPUSD is nearly flat for the day, trading near at $1.408. The Pound is into its third day of gains after prices fell below 1.385 on Monday.

European equities are weaker today with the German DAX down -0.39% while the London FTSE100 is down -0.17% at the time of writing.

The NY session opened with the weekly jobless claims rising more than expected. Data released today showed a print of 278k against estimates of 271k. Other data due later in the evening include ISM’s non-manufacturing PMI and final services PMI. US futures markets are pointing to a weaker  open with the Dow Jones Industrials down -0.07% and the S&P500 futures down -0.08%

Commodity markets are bullish today with Gold prices back at the $1245 handle. Prices managed to trim their losses following yesterday’s early decline to lows near $1226.50. At the time of writing, Gold prices are up 0.19% trading at $1242 an ounce. Oil prices on the other hand is down -0.84% trading at $34.45 a barrel.