Mixed Survey and Retail Sales Data Drag on Markets

Flash manufacturing and service reports from around the world have been rolling out overnight. The general tone so far has been disappointing particularly in Australia where flash Manufacturing PMI remained under 50 in contraction territory (47.5 vs street 50.6). The main bright spot today has been the UK where retail sales (2.9% vs street 1.5%) and flash Manufacturing PMI beat expectations.

In Canada today, retail sales also came in stronger than expected (1.8% vs street 0.7%), while producer prices indicated easing inflation pressures. US flash Manufacturing PMI (street 51.0) and flash Service PMI (street 53.7) are due at 9:45 am EDT, followed by Existing Home Sales at 10:00 am.

With investors bracing for today’s Quadruple Witching expiry of futures and options, and the upcoming reweighting of US indices and index tracking portfolios, US index futures are down 0.1%-0.2% so far this morning. Over in Europe, the FTSE and Dax are down 0.5%-0.6%. Gold is up 0.5%, while Bitcoin is down 2.0%. In commodity action, US Crude Oil is steady near $81.25, while Natural Gas is down 0.8% and Copper is down 1.5% trading near $4.50/lb.

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