Global Markets:
- Asian Stock Markets : Nikkei up 0.88%, Shanghai Composite down 0.99%, Hang Seng down 1.06%, ASX down 0.55%
- Commodities : Gold at $1240.90 (+0.10%), Silver at $15.83 (+0.11%), Brent Oil at $72.14 (+0.42%), WTI Oil at $67.16 (+0.13%)
- Rates : US 10-year yield at 2.871, UK 10-year yield at 1.279, Germany 10-year yield at 0.373
News & Data:
- (NZD) CPI q/q 0.40% vs 0.50% expected
- (USD) Empire State Manufacturing Index 22.6 vs 20.3 expected
- (USD) Retail Sales m/m 0.50% vs 0.40% expected
- (USD) Core Retail Sales m/m 0.40% vs 0.40% expected
- (CAD) Foreign Securities Purchases 2.18B vs 7.03B expected
- China’s new home prices in June rise fastest in 20 months
- U.K.'s May in Brexit Turmoil as Furious Pro-EU Tories Rebel
- Trump backs Putin on election meddling at summit, stirs fierce criticism
Markets Update:
Asian stock markets, with the exception of Japan, are in negative territory on Tuesday following the lackluster cues overnight from Wall Street and the plunge in crude oil prices. Investors are also cautious as they focus on the earnings and production results of major companies due this week. Crude oil prices declined sharply as Libyan ports reopened, while the dollar steadied ahead of Federal Reserve Chairman Jerome Powell’s first congressional testimony.
Overnight on Wall Street, the Dow edged up 0.2 percent but the S&P 500 lost 0.1 percent as energy shares were hit by the drop in oil that offset a jump in financials. The Australian market is extending losses from the previous session following the mixed cues from Wall Street and the fall in crude oil prices. Investors are cautious as they digested production results of major mining and oil companies. The Japanese market, which reopened for trade after a holiday, is rising as a weaker yen lifted exporters' shares.
Hong Kong's Hang Seng Index fell more than a percent amid broad-based losses. Meanwhile, the Shanghai composite pulled back by around a percent and the Shenzhen composite declined slightly lesser than a percent. The extended slide came a day after the release of China data, which showed economic growth slowed to 6.7 percent in the second quarter, compared to the 6.8 percent seen in the first three months of the year.
In currencies, the dollar index, which tracks the greenback against a basket of six major currencies, softened to trade at 94.473, compared to levels at the 94.5 handle on Monday. Treasury yields remained buoyant after rising overnight when strong U.S. domestic retail sales supported the view of solid economic growth in the second quarter.
Upcoming Events:
- 09:00 AM GMT – (GBP) BOE Gov Carney Speaks
- 09:30 AM GMT – (GBP) Average Earnings Index 3m/y
- 09:30 AM GMT – (GBP) Claimant Count Change
- 09:30 AM GMT – (GBP) Unemployment Rate
- 01:30 PM GMT – (CAD) Manufacturing Sales m/m
- 02:15 PM GMT – (USD) Capacity Utilization Rate
- 02:15 PM GMT – (USD) Industrial Production m/m
- 03:00 PM GMT – (USD) Fed Chair Powell Testifies
- Tentative – (NZD) GDT Price Index
