Global Markets:
- Asian stock markets: Nikkei down 2.50 %, Shanghai Composite gained 0.40 %, Hang Seng rose 0.35 %, ASX 200 fell 0.30 %
- Commodities: Gold at $1097 (+0.10 %), Silver at $13.88 (+0.05 %), WTI Oil at $30.95 (-1.50 %), Brent Oil at $31.45 (-0.45 %)
- Rates: US 10 year yield at 2.17, UK 10 year yield at 1.77, German 10 year yield at 0.55
News & Data:
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (W/E 10 Jan): 114.1 (prev 116.3)
- Japan BoP Current Account Balance (Nov): JPY 1143.5 Bln (exp JPY 895.0 Bln prev JPY 1458.4 Bln)
- Japan BoP Trade Balance (Nov): JPY -271.5 Bln (exp JPY -158.7 Bln prev JPY 200.2 Bln)
- New Zealand ANZ Commodity Price Index (MoM) Dec: -1.8% (prev -5.6%)
- PBoC Fixes Yuan Reference Rate At 6.5628 (prev 6.5626)
- Onshore Yuan At A Discount To Offshore Yuan
- Asia stocks wary as China concerns remain, oil drops – RTRS
- Crude oil prices fall as much as 20 percent since beginning of the year – RTRS
Markets Update:
Sentiment remains negative across the markets, with Asian stock indices again falling overnight. The Nikkei declined 1.30 % after the open and later extended losses to more than 2 % on the day. In FX, the safe havens JPY and CHF strengthened in Asia, while the Aussie Dollar was the worst performing currency.
USD/JPY reached the 118.00 level just ahead of the Tokyo open, but then came under selling pressure and declined to a low of 117.40. Meanwhile, the USD/CAD continues to be very well bid amid fresh lows in oil prices. The pair rallied to 1.4240 yesterday, a fresh multi-year high. In Asia, it fell back to 1.4205, but made it back to 1.4230 after the Tokyo open. With WTI likely to break below $30 soon, USD/CAD momentum will remain strong.
After a rather quiet day with little data/events, today should be more interesting with the release of UK industrial & manufacturing data at 09:30 GMT, followed by a speech from BoJ Governor Kuroda and BoE Govenor Carney at 10:30 and 14:15 GMT respectively.
Economic Calendar:
- 09:30 GMT – UK Industrial Production
- 09:30 GMT – UK Manufacturing Production
- 10:30 GMT – Bank of Japan Governor Kuroda speaks
- 14:15 GMT – Bank of England Governor Carney speaks
- 15:00 GMT – US JOLTs Job Openings
