June 10th 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
European share markets kick off the week on softer tone despite a strong display by Asian bourses in overnight trade. Asian markets were comforted by Friday's US nonfarm payrolls but gains were curbed by poor data from China over the weekend which is currently weighing on European markets. The US jobs report was seen as a "goldilocks" reading, showing momentum in US jobs growth but no let up in the unemployment rate, indicating that the Federal Reserve may not have a bold enough case to taper asset purchases any time soon.
Back to data out over the weekend which is currently shaking the markets; China's imports fell, industrial output is slightly lower on the year and retail sales inched up a touch but nothing too stunning. Inflation fell and money supply growth eased, leading market participants to believe the world's second largest economy has officially lost momentum during the first half of the year.
It was a different story out of Japan however as data showed a larger than expected current account surplus and an upward revision in Q1 GDP. Growth for the period was adjusted up to 4.1% from 3.5%. The Nikkei 225 snapped a three-day losing streak following the data, closing above the 13,000 mark it fell from last week. Markets have shown concern over PM Abe's economic frame work, but data clearly suggests that Abenomics has had a positive impact on the country so far.
Here in Europe, economic data is thin on the ground today with only French industrial production data worth noting. Industrial output in France jumped sharply in April, up 2.2% versus -0.6% in March. Manufacturing data from France was strong in April too. Both reports suggest France's Q2 period kicked off on a stronger note.
Looking ahead, no major data due so eyes will be on this week's big events which include Tuesday's BOJ rate announcement and UK industrial and manufacturing output. Wednesday sees the release of UK labour data and euro zone industrial output. Thursday sees the release of US retail sales while Friday sees the release of US industrial output and the Michigan confidence report.
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