Global Markets:
- Asian Stock Markets : Nikkei down 1.38%, Shanghai Composite up 0.76%, Hang Seng up 0.15%, ASX down 0.91%
- Commodities : Gold at $1231.10 (0.00%), Silver at $15.52 (-0.22%), Brent Oil at $72.94 (-0.18%), WTI Oil at $68.09 (-0.25%)
- Rates : US 10-year yield at 2.895, UK 10-year yield at 1.233, Germany 10-year yield at 0.373
News & Data:
- (CAD) Trimmed CPI y/y 2.00% vs 1.90% previous
- (CAD) Retail Sales m/m 2.00% vs 1.00% expected
- (CAD) Median CPI y/y 2.00% vs 2.00% previous
- (CAD) Common CPI y/y 1.90% vs 1.90% previous
- (CAD) Core Retail Sales m/m 1.40% vs 0.60% expected
- (CAD) CPI m/m 0.10% vs 0.10% expected
- (GBP) Public Sector Net Borrowing 4.5B vs 3.6B expected
- G20 Summit Ends with No Clear Path Forward on Trade or Growth
- New Zealand Acting Prime Minister Winston Peters: Inflation not sole issue facing economy, new reserve bank legislation tabled in parliament
- Trump to Iranian President Rouhani: Never, ever threaten the United States again or you will suffer consequences
CFTC Positioning Data (Week Ending July 17th, 2018)
- EUR long 21K vs 24K long last week. Longs trimmed by 3K.
- GBP short 38K vs 40K short last week. Shorts trimmed by 2K
- JPY short 59K vs 40K short last week. Shorts increased by 19K.
- CHF short 42K vs 40K short last week. Shorts increased by 2K
- CAD short 47K vs 53K short last week. SHorts trimmed by 6K.
- AUD short 41k vs 41K short last week. Unchanged on the week.
- NZD short 25K vs 27K short last week. Shorts trimmed by 2K.
Markets Update:
Asian shares dipped on Monday on fears of more protectionist measures from the United States while the dollar declined against major currencies after U.S. President Donald Trump criticized the Federal Reserve’s tightening policy and also accused the European Union as well as China of manipulating their currencies. Worries about trade wars also weighed on investor sentiment. The G20 finance ministers issued a warning on Sunday that "heightened trade and geopolitical tensions" posed an increased risk to global growth.
The Japanese market is notably lower following the negative lead from Wall Street and as the yen strengthened amid speculation that the Bank of Japan is actively discussing changes to its stimulus policy. Gains by banks were more than offset by weakness in exporters' shares. The Australian market is also on the decline. Mining, bank and oil stocks are lower. Meanwhile, Chinese equities were mixed.
The Shanghai composite reversed early losses to climb 0.7 percent, and the smaller Shenzhen composite pared steeper gains seen earlier to last trade lower by 0.2 percent. The blue-chip CSI 300 index, meanwhile, added 0.5 percent in afternoon trade.
The dollar nursed its wounds on the back of those comments after Friday's slide. The dollar index, which tracks the greenback against a basket of currencies, stood at 94.279 after stumbling in the last session. Trump’s comments against Fed rate hikes helped steepen the Treasury yield curve. In commodities, oil prices were held back by concerns over U.S.-China trade tensions and increased supply.
Upcoming Events:
Monday, July 23rd 2018
- 03:00 PM GMT – (USD) Existing Home Sales
- 06:00 PM GMT – (GBP) MPC Member Broadbent Speaks
Tuesday, July 24th 2018
- 08:00 AM GMT – (EUR) French Flash Manufacturing PMI
- 08:00 AM GMT – (EUR) French Flash Services PMI
- 08:30 AM GMT – (EUR) German Flash Manufacturing PMI
- 08:30 AM GMT – (EUR) German Flash Services PMI
- 09:00 AM GMT – (EUR) Flash Manufacturing PMI
- 09:00 AM GMT – (EUR) Flash Services PMI
- 11:45 PM GMT – (NZD) Trade Balance
Wednesday, July 25th 2018
- 02:30 AM GMT – (AUD) CPI q/q
- 02:30 AM GMT – (AUD) Trimmed Mean CPI q/q
- 09:00 AM GMT – (EUR) German Ifo Business Climate
- 09:00 AM GMT – (EUR) M3 Money Supply y/y
- 03:30 PM GMT – (USD) Crude Oil Inventories
Thursday, July 26th 2018
- 08:00 AM GMT – (EUR) Spanish Unemployment Rate
- Tentative – (All) OPEC-JMMC Meetings
- 12:45 PM GMT – (EUR) Main Refinancing Rate
- 01:30 PM GMT – (EUR) ECB Press Conference
- 01:30 PM GMT – (USD) Core Durable Goods Orders m/m
- 01:30 PM GMT – (USD) Durable Goods Orders m/m
- 01:30 PM GMT – (USD) Unemployment Claims
Friday, July 27th 2018
- 01:30 PM GMT – (USD) Advance GDP q/q
- 01:30 PM GMT – (USD) Advance GDP Price Index q/q
- 03:00 PM GMT – (USD) Revised UoM Consumer Sentiment
