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With much of the world still enjoying an extended Easter weekend global markets are in a restrained mood as liquidity and overall activity has been curtailed by both an absence of traders and market making news.

As Easter Monday comes to a close in Asia equities in Japan are up as consumer inflation ticked upwards for the first time since the Bank of Japan cut rates into negative territory accompanying this rise was a fall in the Yen as it faced pressure from a rebounding greenback.   Looking to China, the good mood carried on, as news of far better than expected industrial profits pushed both the Shanghai and Shenzhen markets higher as the strongest reading in 18 months alleviated some of the fears that have surrounded the strength of China’s manufacturing sector.   Despite the Easter Mondaybank holiday, both the Australian and New Zealand dollars saw strength as traders viewed the positive news out of China as supportive to these two export orientated economies

While the bulk of Europe remains away from the office for the Easter Monday bank holiday light trading in both the sterling and euro continue with both currencies showing strength against the greenback. Ahead of the North American open stock futures on the DJIA and S&P 500 indicate that traders are set to start the day in a positive mood.   With a relative lack of tier one or event data on the horizon for today it is likely the current trend of passivity will persist throughout the day. As board member’s issue conflicting commentary and inflation and wage data ebb higher the expected rate path to be taken by the Federal Reserve has become increasingly unclear.  On the docket for today are trade balance and personal income figures out of the United States which may shed light ahead ofFriday’s all important payroll report.

Further reading:

Core PCE inflation disappoints +0.1% m/m

EUR: External Factors In The Driver’s Seat; Sell Rallies – Credit Agricole