Vehicle sales rally but fail to arrest market's fall
Despite a public holiday in the United States, there was plenty of action on equity markets yesterday.
Chinese equity markets fell 7.7% as the authorities reigned in funding for margin lending.
In Europe, the expectation of cheap funding, via quantitative easing, saw the German Dax index rise 0.7%, the French CAC 40 up 0.4% and the FTSE 100 up 0.5%.
US markets were closed.
The US treasury market was closed but futures traded, implying US 10 year yields slipped 1 basis point to 1.82%.
Australian 3 year government bond future yields were stuck between 2.09% and 2.13%, while 10 year yields ranged between 2.58% and 2.63%.
Overnight the Danish Central Bank cut its deposit rate to minus 0.2%. The Danish currency remains pegged to the euro. The ECB next meets on Thursday.
The USD index was marginally weaker as the euro picked up a touch.
The euro remains close to 12 year lows. The AUD came off its highs for the day but remains in the US 82 cent range.
The price of oil fell on concerns over Chinese economic growth.
China's latest GDP figures are due out today. Also putting downward pressure on oil prices were reports of record oil production in Iraq.
After picking up on the weekend, copper prices moved lower overnight on Chinese growth concerns while the price of gold was essentially unchanged.
Motor vehicle sales rose 3.0% in December to be down just 1.0% over the year.
Sales peaked in September 2012 and the December outcome was down only 2.6% from that peak.
SUV sales continue to grow but passenger vehicle sales are down 7.1% over the year.
The monthly TD Securities inflation index was flat in December to be up 1.5% over the year.
No significant statistics were released overnight but curbs were placed on the funding of margin lending.
The surge in Chinese equities in the past few months has been aided by debt funding. GDP, retail sales and industrial production figures are due today.
Industrial production in Japan fell 0.5% during November to be down 3.7% over the year.
The figures released were final numbers and were a marginal improvement on the preliminary data. Japan's economy continues to struggle to find traction for growth.
Construction output in the Eurozone rose 2.2% in the year to November.
Construction activity has picked up since the depressed period from 2008 to 2013. The Eurozone current account saw its its surplus slip in November.
Eurozone countries continue to attract direct and portfolio investment inflows. A general election will be held in Greece this weekend.
No significant data released.
House prices in the UK rose 8.2% in the year to January. This was up on the 7.0% rise seen in the year to December according to Rightmove. House prices in London rose 12.8% over the year to January.
The US celebrated Martin Luther King Day with a public holiday yesterday.