Global Broad Markets Produce Cautious Day, Asian Stocks Mixed

Global markets became tentative on Monday as central bank ramifications hover over the trading landscape. Wall Street produced cautious selling. The Bank of Japan kept its interest rate policy in place. Tomorrow the Federal Reserve will release its outlook and monetary policy.

Tax Reform and Fed in Consideration, Wall Street Produces Cautious Trading

As expected indictments were handed out in Washington yesterday, regarding the ‘Russian influence’ saga. Wall Street responded with relatively light selling. Personal Spending data in the U.S showed an improvement on Monday, and today a Consumer Confidence reading will be released. Tax reform remains a hot topic among investors, and tomorrow the Federal Reserve will publish its interest rate decision.

No Change in Policy from Japan, China Manufacturing Falters Slightly    

The Bank of Japan surprised no one today when it held firm on its economic outlook today and did not increase its interest rates. Asian stocks traded mixed on Tuesday after wall street retreats from a record high. China releases Manufacturing Purchasing Managers Index results which came in below their estimate. Asian markets have remained cautious and the Nikkei has experienced a slight decline. The Yen is stronger against the U.S Dollar and is near the 113.00 level.

Pound Gains and Euro Holds, Consumer Price Index from E.U. Today

The Pound has gained against the U.S Dollar, while the Euro has remained locked in place. Inflation data will come from the European Union today, and the shadow of central bank policy statements continues to create tension. The Bank of England’s potential interest rate hike on Thursday remains a major focus. European equities faltered slightly on Monday.

Gold Gains as Risk Emerges, Short Term Speculative Buying

Gold has managed to turn in gains the past day and is near 1275.00 U.S Dollars an ounce. Heightened political risk events have likely fed into some short-term speculative buying and it may persist. However, Gold has proven a tough trade the past couple of weeks

Inflation Numbers from Europe, Consumer Sentiment from States

A Consumer Confidence reading will come from the States at 14:00 GMT which will influence traders.

• 10:00 AM GMT E.U., Consumer Price Index Flash Estimate
• 13:45 PM GMT U.S., Chicago Purchasing Managers Index
• 14:00 PM GMT U.S., CB Consumer Confidence

Yaron Mazor is a senior analyst at SuperTraderTV.

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