Global Markets:
- Asian Stock Markets : Nikkei down 0.01%, Shanghai Composite down 0.05%, Hang Seng down 0.23%, ASX down 0.07%
- Commodities : Gold at $1310.75 (-0.33%), Silver at $15.60 (-0.32%), Brent Oil at $64.27 (+1.04%), WTI Oil at $54.36 (+0.85%)
- Rates : US 10-year yield at 2.706, UK 10-year yield at 1.185, Germany 10-year yield at 0.128
News & Data:
- (CNY) Trade Balance 271B vs 241B expected
- (JPY) Prelim GDP q/q 0.30% vs 0.40% expected
- (USD) Core CPI m/m 0.20% vs 0.20% expected
- (USD) CPI m/m 0.00% vs 0.10% expected
- (GBP) RPI y/y 2.50% vs 2.60% expected
- (GBP) PPI Input m/m -0.10% vs 0.20% expected
- (GBP) CPI y/y 1.80% vs 1.90% expected
- Italian PM Conte Says His Government Won’t Fall: Repubblica
- US said to weigh 60-day extension for China tariff deadline – BBG
Markets Update:
Asian stock markets are mixed on Thursday despite the positive cues overnight from Wall Street, with investors reading cautiously as they hoped for progress in the U.S.-China trade talks currently underway in Beijing. Investors also looked ahead to China’s trade data for the month of January due later in the day. The South China Morning post reported that Chinese President Xi Jinping will meet with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer on Friday, adding to optimism about the trade talks.
The mainland Chinese markets were mixed by the morning session’s end. The Shanghai composite was flat while the Shenzhen component was slightly higher. Hong Kong’s Hang Seng index fell 0.2 percent. Elsewhere in Asia, Japan’s Nikkei 225 Topix both rose slightly in afternoon trade. Shares of Fast Retailing, the company behind the Uniqlo chain of apparel stores, recovered from earlier losses to gain about 1 percent.
Australia’s ASX 200 shed its earlier gains to trade nearly flat in afternoon trade as the heavily-weighted financial subindex slipped 0.82 percent. South Korea’s Kospi fell by about 0.2 percent.
In currency markets, the improvement in risk appetite undermined the safe haven yen and propelled the dollar to its best levels of the year so far at 111.05. The euro took a hit of its own from dire data on European industrial output which pushed long-term market inflation expectations to new lows, while putting downward pressure on bond yields in the bloc.
Oil prices found support as top exporter Saudi Arabia said it would cut crude exports and deliver an even deeper cut to its production.
Upcoming Events:
- 08:00 AM GMT – (EUR) German Prelim GDP q/q
- 10:30 AM GMT – (GBP) MPC Member Vlieghe Speaks
- 11:00 AM GMT – (EUR) Flash GDP q/q
- 02:30 PM GMT – (CAD) Manufacturing Sales m/m
- 02:30 PM GMT – (USD) Core Retail Sales m/m
- 02:30 PM GMT – (USD) PPI m/m
- 02:30 PM GMT – (USD) Retail Sales m/m
- 02:30 PM GMT – (USD) Core PPI m/m
- 09:45 PM GMT – (AUD) RBA Assist Gov Kent Speaks
- &more…
