Global equities have been cautious the past day as traders begin to brace for central bank statements from Japan and Europe. The U.S Dollar has remained vulnerable and while equities have been tentative they remain near highs on many global exchanges.

Cautious Wall Street Remains Near Highs

Wall Street traded in a rather flat manner on Monday as corporate earnings continue to be published. The Empire State Manufacturing Index turned in an unimpressive result as it came in far below its expectation. However, the main talking point remains the outlook of the Federal Reserve and the notion it will not be able to raise interest rates until perhaps December. The U.S Dollar has been vulnerable in forex during the past week. The U.S will release housing data today and tomorrow. The three major Indexes remain near highs and while equities appear cautious, there is still plenty of risk on the trading table being conducted by investors.

Shanghai Shenzhen Composite Gains

Japanese equities sold off marginally today, and the Yen has stayed within its stronger territory against the U.S Dollar near the 112.00 level. The Shanghai Shenzhen and Hang Seng Indexes produced cautious gains. The Hang Seng has gained over 3 and half percent the past month. Thursday will be a big day for Asian traders as the Bank of Japan issues its monetary policy and Trade Balance numbers come from the nation.

U.K. Inflation Numbers Disappoint

The Consumer Price Index from the U.K came in below expectations this morning with a result of 2.6% compared to the estimated gain of 2.9%. In the immediate aftermath of the report being published the Pound has fallen against the U.S Dollar and the 1.30 level is in focus. A German Economic Sentiment reading came in slightly below its estimate this morning, but has not impacted the market greatly. European equities have been mixed early with cautious trading. The Euro has maintained its stronger stance against the U.S Dollar early and should be watched closely the remainder of the day. The ECB monetary policy meeting is on Thursday.

Gold Speculation Reignites

The precious metal is near 1235.00 U.S Dollars an ounce and investors are showing a willingness to speculate with buying positions. Gold has come off its lows made last week with a vengeance and investors have reignited the precious metal in the past three trading sessions.

Yaron Mazor is a senior analyst at SuperTraderTV.

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