Key Points

Bias: Risk neutral

Commentary

U.S. stocks opened on the offer overnight, continuing the weakness from Wednesday, before bouncing into the last hour of trade to finish firmer. The late gains were fueled by banking stocks after the Federal Deposit Insurance Commission said they were planning to loosen restrictions imposed to prevent the investment into venture capital funds.

The big Dollar continued to grind slightly higher, supported by a slightly better than expected Initial Claims report which showed Initial Unemployment claims falling slightly. The Mexican Central Bank also cut rates 50bps as was widely expected.

Commodities were mixed, with oil finishing firmer and gold again ending slightly weaker.

Bias

Its Friday and we have had a lack of clear direction all week, so expect yet another quiet session in Asia today. The data calendar today sees Japanese Tokyo CPI, German Import Prices and U.S. Personal Income and Spending numbers. The flagship release will be U.S. Michigan Sentiment.

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