Key Points

Bias: Risk off

Commentary

U.S. stocks opened on the bid overnight, supported by the continued gradual opening of U.S. and global economies. The early gains came despite another +3mln Initial Claims report. A late dip in Pfizer stock saw U.S. equities trim gains into the close.

The Big Dollar gave back some of its recent gains today, pressured by talk that U.S. rates could turn negative. This saw the Dollar weaker against most of the majors. The AUD underperformed slightly ahead of the RBA Monetary Policy Statement.

Talk of negative U.S. rates also helped support gold prices overnight, while oil eased slightly.

Bias

Expect the “Friday effect” to see a quiet day’s trade today, with developments to shadow data releases. Today sees Japanese Household Spending, the RBA Monetary Policy Statement, and public holidays in the UK and France. Tonight sees U.S. Non-Farm Payrolls, with the market expecting a 21.4mln fall.

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