Global Markets:
- Asian Stock Markets : Nikkei up 0.92%, Shanghai Composite up 1.55%, Hang Seng up 2.12%, ASX up 0.33%
- Commodities : Gold at $1212.90 (-0.03%), Silver at $14.83 (+0.21%), Brent Oil at $76.14 (+0.01%), WTI Oil at $68.72 (0.00%)
- Rates : US 10-year yield at 2.815, UK 10-year yield at 1.279, Germany 10-year yield at 0.350
News & Data:
- (USD) Durable Goods Orders m/m -1.70% vs -0.70% expected
- (USD) Core Durable Goods Orders m/m 0.20% vs 0.50% expected
- Abe expected to win leadership race despite flat ratings
- ScoMo should give some mojo to AU financial markets, but uncertainties remain
- China State Planner: China Faces Relatively Big Pressure For Investment Growth Slowdown In Future
- The People's Bank of China (PBOC) set the yuan reference rate at 6.8508 vs. Friday's fix of 6.8710
CFTC Positioning Data (Week Ending AUG 21st, 2018):
- EUR short 5K vs 2K long last week.
- GBP short 72K vs 61K short last week.
- JPY short 47K vs 58K short last week.
- CHF short 47K vs 46K short last week.
- CAD short 27K vs 26K short last week.
- AUD short 50k vs 51k short last week.
- NZD short 25K vs 27K short last week.
Markets Update:
Asian stock markets are mostly in positive territory on Monday, tracking the record closing highs on Wall Street Friday after Federal Reserve Chairman Jerome Powell said that the strength of the U.S. economic expansion justified gradual interest rate hikes. In addition, higher commodity prices boosted resources stocks. At the Jackson Hole Symposium in Wyoming, Powell said, "As the most recent FOMC statement indicates, if the strong growth in income and jobs continues, further gradual increases in the target range for the federal funds rate will likely be appropriate."
Greater China markets in the green following a move by China's central bank to guide the management of the yuan, which analysts saw as a way to slow the yuan's slide. The Greater China markets gained in midday trade. Hong Kong's Hang Seng index rose by more than 2 percent as all of its major sectors rose, with services up by 2.99 percent.
Over on the mainland, the Shanghai composite traded by more than 1.5 percent up while the Shenzhen composite was higher by 2 percent. The Japanese market is advancing for a fifth straight session following the gains on Wall Street Friday. Exporters are higher despite a stronger yen. In Australia, the ASX 200 was up by 0.33 percent after trading in negative territory earlier in the day, as the heavily weighted financials sector reversed its earlier losses to trade flat.
The dollar index, which tracks the greenback against a basket of six major rivals, was down 0.07 percent at 95.075. The U.S. dollar is trading in the lower 111 yen-range on Monday. Oil prices fell after rising last week, ending a streak of weekly declines on tightening supply, driven by the prospect of lower oil supply from Iran.
Upcoming Events:
Monday, August 27th 2018
- 09:00 AM GMT – (EUR) German Ifo Business Climate
Tuesday, August 28th 2018
- 03:00 PM GMT – (USD) CB Consumer Confidence
Wednesday, August 29th 2018
- 01:30 PM GMT – (CAD) Current Account
- 01:30 PM GMT – (USD) Prelim GDP q/q
- 03:30 PM GMT – (USD) Crude Oil Inventories
Thursday, August 30th 2018
- 02:00 AM GMT – (NZD) ANZ Business Confidence
- 02:30 AM GMT – (AUD) Private Capital Expenditure q/q
- 02:30 AM GMT – (AUD) Building Approvals m/m
- All Day – (EUR) German Prelim CPI m/m
- 08:00 AM GMT – (CHF) KOF Economic Barometer
- 08:00 AM GMT – (EUR) Spanish Flash CPI y/y
- 01:30 PM GMT – (CAD) GDP m/m
- 01:30 PM GMT – (USD) Core PCE Price Index m/m
- 01:30 PM GMT – (USD) Personal Spending m/m
- 06:30 PM GMT – (EUR) German Buba President Weidmann Speaks
Friday, August 31st 2018
- 02:00 AM GMT – (CNY) Manufacturing PMI
- 02:00 AM GMT – (CNY) Non-Manufacturing PMI
- 07:00 AM GMT – (EUR) German Retail Sales m/m
- 10:00 AM GMT – (EUR) CPI Flash Estimate y/y
- 10:00 AM GMT – (EUR) Core CPI Flash Estimate y/y
- 01:30 PM GMT – (CAD) RMPI m/m
- 02:45 PM GMT – (USD) Chicago PMI
