Morning Meeting 03/07/12

Good Morning.

Manufacturing data around the world highlighted the effect on growth of the protracted euro zone debt crisis. In all the major economies world wide the Manufacturing index readings came in below or matched the expectations, despite the fact that these have been already set lower by the analysts surveyed.

Markets kept their upside momentum  driven by investors idea that major central banks will take further policy steps to support the fragile economy.

Nikkei trades higher 0.73% to 9,069.15, the Hang Seng is up 1.56% to 19,744.20 (yesterday it was closed).  Eur/$ cross is flirting with the 1.2600$ mark up 0.25% vs yesterday close. As regional benchmarks are inching lower, oil are trimming earlier losses, recovering from Monday, when the weak read in US Manufacturing gave a death kiss to crude futures (yesterday it was down more than 2.5%). US crude futures were up 0.1% to $83.84 a barrel. Monetary stimulus expectation pushed the copper up 1% to $7,703.25 a metric tone.

It's cristal clear that now investors are waiting for central banks world wide to make their steps to reinvigorate their economies. As it is usually said in these circumstances, traders are waiting for the Fed/Ecb put to be triggered.

The first move is expected on Thursday by the Ecb, the question now is  will the answer meet the expectations?

On the Macro side, today in the US :

03.00 PM GMT Factory Orders (MoM)  expected at 0.2% vs prior -0.6%.

Originally posted at www.77sigmatrading.com