Global Stocks Stay near Record Highs, Gold Edges Higher

Inflation numbers from the States on Friday put the U.S Dollar on a wild ride as it lost value. Empire State Manufacturing Index numbers will come from the States today. Tomorrow CPI data will come from the U.K and Thursday’s ECB meeting awaits in the wings.

Inflation Data from U.S. Lackluster

The weak inflation numbers from the U.S on Friday stunned some investors who were quickly forced to reconsider their trading positions. The U.S Dollar got weaker in the immediate wake of the lackluster Core Consumer Price Index figures. Traders believe the Federal Reserve will not raise its interest rate in September, and may have a hard battle ahead to attempt a hike in December. The Empire State Manufacturing Index will be released today from the States. Wall Street turned in gains on Friday in a cautious manner and trading on the major Indexes will prove interesting this week.

China Oversight on Banking

Gross Domestic Product numbers from China came in slightly above their estimate today. However, the Industrial Production numbers turned in a very solid performance with a gain of 7.6%. But the Shanghai Shenzhen composite today saw a sell off, which was likely related to the Chinese government meetings over the weekend in which it was stated the government will increase controls on financial regulation with more oversight on banking. Japan is on holiday today, but the Bank of Japan will meet on Thursday regarding monetary policy.

European Inflation Data Hits Target

Inflation results from Europe this morning hit their target dead on with a gain of 1.3% from the Final Consumer Price Index. Economic data from the E.U continues to muster signs of strength. The Euro has range traded against the U.S Dollar early, as the Thursday’s European Central Bank meeting looms. The Pound has lost a bit of value in early trading this morning against the U.S Dollar. Tomorrow the U.K will release its own CPI data.

Tight Range but Volatility Lurks

Gold has continued to traverse a tight range early, after its strong gains on Friday because of the weaker than expected inflation results from the States. The 1230.00 U.S Dollars an ounce mark is an important juncture, but traders must be on the lookout for further volatility from the precious metal today. Gold is trading at $1233.25, +0.45%.

Yaron Mazor is a senior analyst at SuperTraderTV.

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