Global Markets:
- Asian Stock Markets : Nikkei down 0.15%, Hang Seng up 0.56%, ASX down 0.01%
- Commodities : Gold at $1331.20 (+0.20%), Silver at $16.32 (-0.21%), WTI Oil at $67.80 (-0.78%), Brent Oil at $63.02 (-0.82%)
- Rates : US 10-year yield at 2.812, UK 10-year yield at 1.417, Germany 10-year yield at 0.523
News & Data:
- (USD) Unemployment Claims 242K vs 225K expected
- (CAD) Trade Balance -2.7B vs -2.1B expected
- (GBP) Services PMI 51.7 vs 53.9 expected
- (AUD) Trade Balance 0.83B vs 0.68B expected
- Japan faces losses on grain, production fronts if U.S.-China trade war erupts
- China's commerce ministry says Beijing will fight U.S. 'at any cost' after Trump proposes $100 billion in new tariffs
- German business leader urges talks, not tariffs, between U.S., China
Markets Update:
Asian markets reacted mixed to the increased volatility, after President Trump indicated escalations over retaliatory Chinese tariffs. While it was expected to an extent that the Chinese response would fuel a trade war; it turned out to be much more measured than expected, and the US is now seen escalating tensions.
Chinese markets are closed today for the Ching Ming festival, however, Hang Seng is open. Hang Seng has seen strong outperformance, given that it missed the rebound from tech and financial strength yesterday.
Nikkei has been trading firmer today, led by resources. The strengthened yen did not have a major effect on the Nikkei. ASX was mixed, with materials propping up the index, but banks pulling it down.
The dollar was mixed against major crosses. Against the yen, it retreated from the one-month high, as investors bought the yen, after Trump raised the ante on trade. Gold was also seen to be making gains today.
Treasury Yields fell, US 10 year down by 2bps, as investors moved to a risk-off mode. Crude was also on the decline, after making gains on Thursday.
Upcoming Events:
- 12:30 PM GMT – (CAD) Employment Change
- 12:30 PM GMT – (CAD) Unemployment Rate
- 12:30 PM GMT – (USD) Average Hourly Earnings m/m
- 12:30 PM GMT – (USD) Non-Farm Employment Change
- 12:30 PM GMT – (USD) Unemployment Rate
- 02:00 PM GMT – (CAD) Ivey PMI
- 03:15 PM GMT – (GBP) BOE Gov Carney Speaks
- 05:30 PM GMT – (USD) Fed Chair Powell Speaks
