Daily Market Report - 03/02/2015

Yesterday was a fairly quiet day in the markets with not too much happening throughout the global economies. The main talking point is Greece and the impact its debts will have.

The new Finance Minister Yanis Varoufakis met up with around 100 banks and financial institutions yesterday, elaborating that Greece will be able to facilitate its debt with no detrimental impact on its private investors and bond holders.

George Osborne, the UK chancellor did state that he wants the new Greek minister to act responsibly however it is crucial that the eurozone has a better plan for its jobs and growth. He also stated that it is a rising threat to the British economy and at some point, there has to be a growth strategy in order to pay off their debts and reduce some of their deficits.

The Institute for Supply Management’s manufacturing index declined to a one-year low of 53.5 from December’s 55.1.While gauges of orders, exports and production cooled last month, the comments from respondents were more positive, with the makers of food, autos and computers saying sales remained strong so far in 2015

This morning we had the Reserve Bank of Australia announce its interest rate levels. It was sitting at 2.5% with a consensus to remain at that current level. However we saw it fall to 2.25% in the early hours of the morning, weakening off the currency.

Also in Australia we had the trade balance figures this morning, which is summed up as the difference in the value of its imports and exports. This came in lower than the current 1,016m to a reading of -436m.

A slightly better than expected figure was also released from Australia regarding its new building permit approvals. The current reading was at 7.7% with a consensus to come in at -5%, however the figure came just under at -3.3% which was not as bad as expected.

Key Announcements:
GBP - 09:30 : UK PMI Construction (Jan) expected to fall from 57 to 57.6 
USD - 13:30 : US Factory Orders (Dec) expected to remain flat at 0% growth from -0.7%

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