Stock markets around the world are steady to slightly higher as we kick off a big week for economic news. US index futures, WTI crude oil and the FTSE are flat while the Dax and the Nikkei are up 0.3%.
In currencies today, the US dollar is up slightly against other majors on reports that after a couple of additional interest rate increases, the Fed could start running down its big balance sheet later this year by slowing reinvestment.
Sterling is sliding back this morning following a kerfuffle with Spain on the weekend over the future status over Gibraltar and Scotland that could throw a monkey wrench into Brexit negotiations. With formal negotiations not likely to start for another 6-8 weeks, more posturing, harsh stances, wars of words, veiled threats and speculation look likely that could derive swings in the currency as both sides stake out starting positions for talks. The euro, meanwhile, may see focus shift to France for a couple of days with the Presidential candidates debating tomorrow night.
It's a big week for economic news starting with today's manufacturing PMI reports. So far, China and the UK have come in above 50 but below expectations. Reports for the US and Canada are due later this morning along with US construction spending. One country which did significantly better than expectations was Norway, which suggests oil economies are turning around and could bode well for Canada. Hints and speculation about upcoming US initiatives on taxation and trade may also attract attention.
Monthly auto sales may also attract attention from traders. Tesla Motors (NASDAQ:TSLA) may attract interest after reporting over the weekend that it delivered 25,000 vehicles in Q1, above street expectations.