In true to form fashion most major equity bourses showed the ability to rebound on Friday. Certainly investors remain tentative not knowing the future as much as they would like, but FX was also able to provide stability to short-term traders before going into the weekend. The Russian/ Ukrainian situation and upheavals in the Middle East continue to be watched carefully, both crises are known what is not known are exact outcomes.
German PPI data will be released today but it is doubtful to have an effect on investors. Inflation data remains nearly non-existent from the continent including Germany. Tomorrow Core CPI will come the States, but like other spheres inflation is not exactly a worry presently. Existing Home Sales could provide an impetus. Housing sector data from the States last week was disappointing.
It should be noted that on Friday, though few were paying attention to it, the University of Michigan Consumer Sentiment report was negative and combined with a lacklustre Retail Sales report earlier last week will not go down well with investors relying on fundamental news. While the last GDP report from the States was blamed on bad weather, that would not explain poor Retail Sales and less than glimmering Consumer Sentiment.
The remainder of the week will be dominated by PMI data from Germany, France, and the States. The U.K. will also get into the act with Preliminary GDP on Friday and the U.S. will publish Core Durable Goods then too.
Having said the above, investors will focus on international news and what direction the Russian situation takes. While Europe and the U.S. talk about increased sanctions, geo-political maneuvers are in full gear and investors must think short-term, but long-term as well. Interdependence in the modern global economy is a staple for nations. China, Russia, Japan, Europe, the States, and South America are all players that must be watched as this game of chess is played.
Gold which is near 1313.00 as of this writing can be watched as a barometer. The precious metal has been in a fairly confident range the past few days and did not over react to international news before going into weekend.