Themes

• General mood is “risk off”
• U.S. equities hammered on Friday again
• Eyes on FOMC meeting later this week

What’s Moving

U.S. stocks were again the focal point on Friday, with the complex ending at or near day lows for the third consecutive session. This weakness was largely caused by weaker than expected earnings from large companies, with the rise in U.S. rates adding slightly to the weakness.

Some interesting movements in the currency market on Friday, with the JPY and the CHF both attracting safe haven buying, while Sterling fell on technical sales. Commodity currencies were hurt by the weakness in the gold price.

Gold and oil were also both weaker on the day, shadowing equities lower.

Thoughts

The data calendar in Asia is light today, with nothing more than Japanese Manufacturing PMI slated for release. This combined with the Monday effect should see another quiet local start to the week.

The U.S. FOMC meeting is due in the middle of this week and ranging is expected until that hurdle is cleared.

Pivot Points