Global Markets:
- Asian Stock Markets : Nikkei up 0.29%, Shanghai Composite up 1.06%, Hang Seng down 1.82%, ASX down 0.70%
- Commodities : Gold at $1195.70 (+0.34%), Silver at $14.58 (+0.50%), Brent Oil at $85.03 (+0.06%), WTI Oil at $75.53 (+0.31%)
- Rates : US 10-year yield at 3.080, UK 10-year yield at 1.579, Germany 10-year yield at 0.475
News & Data:
- (AUD) Cash Rate 1.50% vs 1.50% expected
- (NZD) NZIER Business Confidence -30 vs -20 previous
- (USD) ISM Manufacturing PMI 59.8 vs 60.1 expected
- (GBP) Net Lending to Individuals m/m 4.0B vs 4.8B expected
- (GBP) Manufacturing PMI 53.8 vs 52.6 expected
- (EUR) German Retail Sales m/m -0.10% vs 0.40% expected
- Japan Inc's inflation expectations slip after BOJ policy change: tankan
- US Dollar Refuses to Die as Global Reserve Currency — But Loses Ground
Markets Update:
Asian stock markets are mostly lower on Tuesday, with some of the markets paring early gains after opening higher following news that the U.S. and Canada have reached a new trade deal called the United States-Mexico-Canada Agreement, or USMCA, that will replace the North American Free Trade Agreement or NAFTA. However, worries about rising U.S.-China tensions weighed on the markets.
Hong Kong’s Hang Seng, which did not trade on Monday due to a holiday, dropped 1.5 percent in reaction to signs of weakness in the Chinese manufacturing sector shown in purchasing managers’ index (PMI) numbers released on Sunday. Over in Japan, however, the Nikkei 225 returned to positive territory to trade up by 0.29 percent in the afternoon, while the Topix was higher by 0.57 percent.
The euro was little changed at $1.1573 after slipping 0.25 percent on Monday on renewed concerns about heavily-indebted Italy’s budget. The single currency has been hurt by concerns that a significant increase in the Italian budget will deepen Italy’s debt and deficit problems.
The dollar was at 113.895 yen after scaling an 11-month high of 114.06 yen on Monday, as improving investor risk sentiment weighed on the Japanese currency. The greenback drew support from an uptick in U.S. Treasury yields as Wall Street gains curbed demand for safe-haven debt.
Crude contracts surged nearly 3 percent to $75.77 a barrel on Monday, their highest since November 2014, as the deal to salvage NAFTA stoked economic growth expectations, with impending U.S. sanctions on Iran seen raising prices.
Upcoming Events:
- 05:30 AM GMT – (AUD) RBA Rate Statement
- 05:30 AM GMT – (AUD) Cash Rate
- 09:30 AM GMT – (GBP) Construction PMI
- 03:00 PM GMT – (USD) FOMC Member Quarles Speaks
- Tentative – (NZD) GDT Price Index
- 05:45 PM GMT – (USD) Fed Chair Powell Speaks
- &more…
