Global Markets:
- Asian stock markets: Nikkei down -0.12 %, Shanghai Composite up 0.38 %, Hang Seng gained 1.474 %, ASX Closed
- Commodities: Gold at $1350.50 (-0.92 %), Silver at $17.40 (-1.19 %), WTI Oil at $65.33 (-0.27 %), Brent Oil at $70.19 (-0.33 %)
- Rates: US 10-year yield at 2.622, UK 10-year yield at 1.41, German 10-year yield at 0.60
News & Data:
- (JPY) SPPI y/y 0.8% vs 0.8% expected
- (JPY) Tokyo Core CPI y/y 0.7% vs 0.8% expected
- (JPY) National Core CPI y/y 0.9% vs 0.9% expected
- (USD) Natural Gas Storage -288B vs -270B expected
- (USD) CB Leading Index m/m 0.6% vs 0.5% expected
- (USD) New Home Sales 625K vs 679K expected
- (EUR) Belgian NBB Business Climate 1.8 vs 0.4 expected
- (USD) Unemployment Claims 233K vs 239K expected
- (CAD) Retail Sales m/m 0.2% vs 0.7% expected
- (CAD) Core Retail Sales m/m 1.6% vs 0.8% expected
- (EUR) Minimum Bid Rate 0 vs 0 expected
- (GBP) CBI Realized Sales 12 vs 12 expected
- (GBP) High Street Lending 36.1K vs 39.9K expected
- (EUR) German Ifo Business Climate 117.6 vs 117.1 expected
- (EUR) Spanish Unemployment Rate 16.6% vs 16.1% expected
- (EUR) German GfK Consumer Climate 11 vs 10.8 expected
- Trump Team at Davos Backs Weaker Dollar, Sharpens Trade War Talk
- Bitcoin Takes Davos Stage in Currency Panel Debate. May, Lagarde, Mnuchin: World Leaders Are Talking Crypto at Davos
Markets Update:
Asian equities were mixed today. With ASX closed for Australia day, it was a fairly quiet session with most indices trading flat. JGBs and regional bonds flat, in contrast with the overnight strength in Treasuries.
The US Dollar has been recuperating from recent losses. Crude futures easing from three-year highs. Gold also coming off amid dollar rebound. Similar pattern can be observed across all metals.
Chinese equities were flat, with PBoC drained net CNY270B, citing relatively high levels of liquidity. No negative spillover from another slowdown in Chinese industrial profit growth.
Nikkei strength chalked up to USDJPY rebound. Japan core inflation unchanged, with policy implications limited. BoJ December minutes reiterated importance of wages in driving inflation.
Dollar still the big story in FX. Treasury Secretary Mnuchin defended his remarks about dollar weakness while Trump later said in Davos they were taken out of context. Euro trading near overnight lows after unchanged ECB decision, although this was largely expected.
The ECB has followed BoJ in pushing back against policy shift speculation. Sources after meeting pointed to internal ECB divisions, with one faction pushing for June as date to signal end of QE.
Upcoming Events:
- 09:00 AM GMT – (EUR) M3 Money Supply y/y
- 09:00 AM GMT – (EUR) Private Loans y/y
- 09:30 AM GMT – (GBP) Prelim GDP q/q
- 09:30 AM GMT – (GBP) Index of Services 3m/3m
- 01:30 PM GMT – (CAD) CPI m/m
- 01:30 PM GMT – (CAD) Common CPI y/y
- 01:30 PM GMT – (CAD) Median CPI y/y
- 01:30 PM GMT – (CAD) Trimmed CPI y/y
- 01:30 PM GMT – (CAD) Core CPI m/m
- 01:30 PM GMT – (USD) Advance GDP q/q
- 01:30 PM GMT – (USD) Core Durable Goods Orders m/m
- 01:30 PM GMT – (USD) Advance GDP Price Index q/q
- 01:30 PM GMT – (USD) Durable Goods Orders m/m
- 01:30 PM GMT – (USD) Goods Trade Balance
- 01:30 PM GMT – (USD) Prelim Wholesale Inventories m/m
- 02:00 PM GMT – (CNY) CB Leading Index m/m
- 02:00 PM GMT – (GBP) BOE Gov Carney Speaks
- 02:00 PM GMT – (JPY) BOJ Gov Kuroda Speaks
- All day – WEF Annual Meetings
- &more…
