Themes

• General mood is “risk off”
• Reuters: Russian armored vehicles entering Donetsk
• Japanese SPPI as expected at 1.2%

What’s Moving

Reports that Russia had started to move some armored vehicles into Donetsk saw some buying of gold and the USD in early Asia this morning, although with U.S. traders on holiday overnight, the buying was seen as “small at best.” The upside stalled shortly afterwards.

RBA’s Assistant Governor Kent then hit the tapes but had nothing to say regarding monetary policy.

USD and EUR looking a little heavy into the end of the day, Europe will most likely hold the line until the New York open, awaiting trading incentives there after the public holiday overnight.

Data tonight sees:

• U.K. Public Sector Net Borrowing (E: -4.3bln)
• German IFO (E: 96.4)
• U.S. Flash Manufacturing PMI (E: 55.9)
• U.S. Flash Services PMI (E: 52.9)

Richmond Manufacturing Index (E: 10)