Global Markets:
- Asian Stock Markets : Nikkei down 0.01%, Shanghai Composite down 0.56%, Hang Seng down 0.05%, ASX up 0.41%
- Commodities : Gold at $1223.70 (-0.34%), Silver at $15.48 (-0.60%), Brent Oil at $72.78 (-0.16%), WTI Oil at $67.67 (-0.12%)
- Rates : US 10-year yield at 2.888, UK 10-year yield at 1.223, Germany 10-year yield at 0.344
News & Data:
- (AUD) Unemployment Rate 5.40% vs 5.40% expected
- (AUD) Employment Change 50.9K vs 16.7K expected
- (USD) Crude Oil Inventories 5.8M vs -3.4M expected
- (USD) Housing Starts 1.17M vs 1.32M expected
- (USD) Building Permits 1.27M vs 1.33M expected
- (EUR) Final CPI y/y 2.00% vs 2.00% expected
- (GBP) RPI y/y 3.40% vs 3.50% expected
- (GBP) PPI Input m/m 0.20% vs 0.30% expected
- (GBP) CPI y/y 2.40% vs 2.60% expected
- China FX Regulator Says Needs To Assess Impact On China's Cross-Border Capital Flows From Trade Frictions
- The People's Bank of China (PBOC) set the Yuan reference rate at 6.7066 vs. the previous day's fix of 6.6914
- Japan’s Exports Extend Growth Streak to 19 Months in June
Markets Update:
Asian stocks traded mixed on Thursday, with some markets losing steam after initially trading higher on the back of Wall Street's earnings-led advance. U.S. Federal Reserve Chairman Jerome Powell reinforced his view of a strong outlook for the U.S. economy on his second day of testimony. Crude oil prices edged higher in Asian trades after rising overnight. However, trade war jitters pushed China’s yuan to fresh one-year lows in both the onshore and offshore markets.
The Japanese market is largely flat following the modest gains overnight on Wall Street and higher crude oil prices. While investors cheered data that showed Japan's trade balance returned to a surplus in June, the momentum was not sustained, with the index giving up most of its initial gains. Hong Kong's Hang Seng Index hovered around the flat line as financials and energy sector gains were offset by declines in industrials and consumer stocks. On the mainland, the Shanghai composite shed nearly half a percent, with Thursday's declines coming on the back of four consecutive sessions of losses. The Australian market is higher as Australia's unemployment rate for June came in line with expectations. However, gains are modest as investors digested production results from major oil companies.
The dollar retreated from a three-week high as investors cashed in on gains the currency made after U.S. Federal Reserve Chairman Jerome Powell’s two-day testimony reinforced a strong economic outlook. Benchmark U.S. 10-year notes fell in price to yield 2.875 percent, from 2.862 percent on Tuesday. The U.S. yield curve remained near its flattest in nearly 11 years.
On the energy front, oil prices were mostly steady after an unexpected rise in U.S. crude inventories was overshadowed by strong U.S. demand data for gasoline overnight.
Upcoming Events:
- 09:30 AM GMT – (GBP) Retail Sales m/m
- 01:30 PM GMT – (USD) Philly Fed Manufacturing Index
- 01:30 PM GMT – (USD) Unemployment Claims
- 02:00 PM GMT – (USD) FOMC Member Quarles Speaks
