Precious metals eased overnight, but recovered within minutes on the New York open. Platinum was the best performer this morning, gaining modestly, while silver lagged behind.
Curiously enough, the dollar index did a little pop of its own at the same time. The euro is weaker today, as German inflation came in below expectations. If the powerhouse of the EU is seeing stagnant prices, what does that foretell for the damaged economies of Greece, Italy, and Spain? The specter of deflation, and the anticipation that the ECB will be driven to begin Fed-style money printing to weaken the euro, caused the common currency to fall for the first time in six days.
The yen also fell, on the withdrawal of safe haven demand and lackluster earnings reports. Japanese markets are closed today for Showa Day, commemorating the late Emperor Hirohito.
The Hang Seng and Shanghai exchanges were higher, as institutional investors stepped in to halt the decline.
Wall St. opened higher, as the earnings season continues to be decent. The Case-Shiller home price index was up 12.9 Y/Y in February, in line with expectations. While a pretty strong number, it’s less than gains in recent months, easing fears that the housing market is in another bubble.
Euro stocks were up today, as the latest sanctions announced against Russia were pretty weak. Tech stocks led the market upward.
Tomorrow is a huge day for the markets. Look at what all is happening Wednesday:
The Federal Reserve Open Market Committee ends, and will announce any changes in monetary policy
- The ADP private sector payrolls report is released
- U.S. GDP for the first quarter will be announced
- The Chicago PMI report, which measures business activity in the Midwest
These can all be market movers on their own, so watch for markets to change directions suddenly if there are any surprises.