In Japan stocks are heading for their biggest weekly gain since April 2020, after the 'manic Monday' we saw last week. The S&P also extended a 6 day rally to 6.6 % yesterday - its best 6 day performance since November 2022. This globally equity rally comes as fears over the US economy eased further yesterday with strong retail sales figures - the VIX has fallen to around 15 after spinking to 65 last week. The yen weakness is returning too which is helping the bounce in Japanese equities - USDJPY currently trading at around 149 - could investors be tempted back in to the carry trade that blew up a couple of weeks ago?
In commodities, Iron Ore futures in Singapore (SCO1) traded to their lowest levels since Nov 2022 this morning, continuing the decline that started on 5 July and losing around -15% in the process. This move is driven by concerns that supplies are running ahead of demand with China's steelmakers continuing to struggle. WTI is trading at $77.79/barrel and gold is at $2456.19/oz. On the data front today we have:
- University of Michigan consumer sentiment
- Austan Goolsbee of the Fed speaks
- Canada and US housing starts.
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