Global Markets:
- Asian Stock Markets : Nikkei up 1.04%, Shanghai Composite up 0.63%, Hang Seng up 0.62%, ASX up 0.40%
- Commodities : Gold at $1294.75 (-0.34%), Silver at $15.15 (-0.11%), Brent Oil at $65.35 (+0.43%), WTI Oil at $56.03 (+0.41%)
- Rates : US 10-year yield at 2.762, UK 10-year yield at 1.298, Germany 10-year yield at 0.197
News & Data:
- (AUD) Company Operating Profits q/q 0.80% vs 3.10% expected
- (AUD) Building Approvals m/m 2.50% vs 1.50% expected
- (USD) Revised UoM Consumer Sentiment 93.8 vs 95.8 expected
- (USD) ISM Manufacturing PMI 54.2 vs 55.6 expected
- (USD) Personal Spending m/m -0.50% vs -0.20% expected
- (USD) Core PCE Price Index m/m 0.20% vs 0.20% expected
- (CAD) GDP m/m -0.10% vs 0.00% expected
- (EUR) Core CPI Flash Estimate y/y 1.00% vs 1.10% expected
- (EUR) CPI Flash Estimate y/y 1.50% vs 1.50% expected
- (GBP) Net Lending to Individuals m/m 4.8B vs 4.7B expected
- (GBP) Manufacturing PMI 52 vs 52 expected
- May promises 1.6 billion pound fund for Brexit-backing towns
- China’s new foreign investment law will strengthen IP protection
- Australia and Indonesia sign a free trade agreement after 8 years of negotiations
Markets Update:
Asian stock markets are mostly higher on Monday on improved risk appetite tracking the positive lead from Wall Street Friday and following a report in the Wall Street Journal that the U.S. and China are close to reaching a trade deal that could lift most or all U.S. tariffs on Beijing. The WSJ also reported that China is offering to lower tariffs on U.S. products in categories ranging from farms to chemicals and autos.
Stocks in mainland China skyrocketed Monday morning following a report that Beijing is offering to lower tariffs on certain U.S. products as part of a trade deal with Washington. By the end of the morning session, the Shanghai composite rose 2.6 percent, but gave up gains to trade 0.8% higher, trading above the 3,000 level for the first time since June 2018.
Hong Kong’s Hang Seng index also jumped 0.6 percent, with shares of Chinese telecommunications equipment firm ZTE gaining 4.51 percent. Japan’s Nikkei 225 advanced 1 percent as shares of index heavyweight Fanuc jumped 3.64 percent. The Topix was up 0.7 percent. The ASX 200 in Australia rose 0.4 percent, with the materials subindex gaining more than 0.5 percent.
March is expected to be a crucial month for global markets with UK parliament voting on Britain’s exit from the European Union while the Fed holds its policy meeting, which could yield clues on plans for future rate hikes and balance sheet reduction. The dollar index slipped against a basket of major currencies from Friday’s one-week high of 96.551. It was last down 0.1 percent at 96.46.
The Australian dollar, a liquid proxy for risk hedges, gained on the broader improvement in sentiment but disappointing domestic data took the wind out of its sail.
Upcoming Events:
Tuesday, March 05, 2019
- 01:30 AM GMT – (AUD) Current Account
- 04:30 AM GMT – (AUD) RBA Rate Statement
- 04:30 AM GMT – (AUD) Cash Rate
- 10:30 AM GMT – (GBP) Services PMI
- 01:30 PM GMT – (USD) FOMC Member Rosengren Speaks
- 04:00 PM GMT – (USD) ISM Non-Manufacturing PMI
- 04:35 PM GMT – (GBP) BOE Gov Carney Speaks
- 11:10 PM GMT – (AUD) RBA Gov Lowe Speaks
Wednesday, March 06, 2019
- 01:30 AM GMT – (AUD) GDP q/q
- 01:15 PM GMT – (GBP) MPC Member Cunliffe Speaks
- 02:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 02:30 PM GMT – (CAD) Trade Balance
- 04:00 PM GMT – (CAD) BOC Rate Statement
- 04:00 PM GMT – (CAD) Overnight Rate
- 04:00 PM GMT – (CAD) Ivey PMI
- 06:00 PM GMT – (USD) FOMC Member Williams Speaks
- 06:30 PM GMT – (GBP) MPC Member Saunders Speaks
Thursday, March 07, 2019
- 01:30 AM GMT – (AUD) Retail Sales m/m
- 01:30 AM GMT – (AUD) Trade Balance
- 10:30 AM GMT – (GBP) MPC Member Tenreyro Speaks
- 01:45 PM GMT – (EUR) Main Refinancing Rate
- 02:30 PM GMT – (EUR) ECB Press Conference
- 06:15 PM GMT – (USD) FOMC Member Brainard Speaks
Friday, March 08, 2019
- Tentative – (CNY) Trade Balance
- 02:30 PM GMT – (CAD) Employment Change
- 02:30 PM GMT – (CAD) Unemployment Rate
- 02:30 PM GMT – (USD) Average Hourly Earnings m/m
- 02:30 PM GMT – (USD) Non-Farm Employment Change
- 02:30 PM GMT – (USD) Unemployment Rate
- 02:30 PM GMT – (USD) Building Permits
Saturday, March 09, 2019
- 04:00 AM GMT – (USD) Fed Chair Powell Speaks
- &more…
