Key Points

Bias: Risk off

Commentary

U.S. stocks posted a soft session overnight, led down by high tech stocks, which swooned after Intel reported that the next generation of semi-conductors will be delayed. This followed through to weakness on Apple and Microsoft, which weighed across the board.  Also pressuring was the first rise in Initial Claims since March.

The USD was slightly weaker overnight, with the Euro again the main benefiter. Sterling was again soft, while the weaker U.S. equities weighed on the Aussie  

Oil prices rose again, while Gold continued to firm, trading towards $1,900/oz.

Bias

Expect a quiet end to the week in Asia today, with Japan again out on holidays. Equities are expected to be pressured, while gold is set to continue to hover at lofty levels. Data today sees Australian PMI, U.K. Retail Sales, European PMI’s and U.S. PMI and New Home Sales.

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