Today looks like it could be active for trading across a number of fronts.
The impact of yesterday's big drop inm the price of oil on energy stocks has been working its way through world markets overnight. While US index futures, the Dax and the Nikkei are all down marginally, resource weighted indices like the FTSE down 0.4% and Australia's S&P/ASX 200 down 0.9% have underperformed.
So far this morning, oil has been bouncing back a bit on no news. WTI is up 0.4% while Brent has regained the $45.00 level. Oil sensitive currencies like CAD are also rebounding.
Major currencies have been steady overnight while gold has bounced cack above $1,250. The top performing currencies have been NZD and NOK in response to central bank meetings. Both the RBNZ and Norges Bank held interest rates steady and put out generally balanced statements. Post-meeting currency rallies indicate that traders had been expecting them to be more dovish. Instead, it appears that more resource country central banks are following the Bank of Canada's lead from last week, deciding at least not to add more stimulus if not yet ready to start reducing stimulus.
An emerging hawkish shift at central banks may also continue to impact US and UK trading. Traders continue to digest the hawkish turn taken by three MPC members in the last few days including former dove Haldane. In the US today four FOMC members are scheduled to speak including Fed Governor Powell is scheduled to speak with stress test results for US banks due after the close today.
For the UK, Brexit remains in focus with PM May set to speak at an EU summit on her plan for the rights of EU citizens living in the UK and future freedom of movement, potentially one of the key issues in negotiations.
In the US, health care stocks may take the spotlight today. The Senate is expected to announce its proposal for Obamacare reform. Discussions have been going on behind the scenes with a vote likely soon, but it's not clear if the proposal has enough support to pass.