Global Markets:
- Asian Stock Markets : Nikkei up 0.18%, Shanghai Composite up 0.70%, Hang Seng up 3.36%, ASX down 0.31%
- Commodities: Gold at $1547.45 (-0.54%), Silver at $19.44 (+1.07%), Brent Oil at $58.61 (+0.60%), WTI Oil at $54.34 (+0.74%)
- Rates : US 10-year yield at 1.481, UK 10-year yield at 0.414, Germany 10-year yield at -0.684
News & Data:
- (NZD) GDT Price Index -0.40% vs -0.20% previous
- (USD) ISM Manufacturing Prices 46 vs 47.6 expected
- (USD) Construction Spending m/m 0.10% vs 0.30% expected
- (USD) ISM Manufacturing PMI 49.1 vs 51.2 expected
- (USD) Final Manufacturing PMI 50.3 vs 50 expected
- (CAD) Manufacturing PMI 49.1 vs 50.2 previous
- (EUR) PPI m/m 0.20% vs 0.30% expected
- (GBP) Construction PMI 45 vs 46.7 expected
- (EUR) Spanish Unemployment Change 54.4K vs 35.8K expected
- (CHF) CPI m/m 0.00% vs -0.10% expected
- (AUD) Cash Rate 1.00% vs 1.00% expected
- (JPY) 10-y Bond Auction -0.27|3.6 vs -0.15|3.8 previous
- (AUD) Current Account 5.9B vs 1.5B expected
- (AUD) Retail Sales m/m -0.10% vs 0.20% expected
- (AUD) AIG Services Index 51.4 vs 43.9 previous
- (NZD) ANZ Commodity Prices m/m 0.30% vs -1.40% previous
- (AUD) GDP q/q 0.50% vs 0.50% expected
- (CNY) Caixin Services PMI 52.1 vs 51.7 expected
Markets Update:
Asian markets mostly gained in early trading Wednesday after data showed improving services-sector activity in China last month. Markets started the day near session lows following Wall Street’s stumble after poor U.S. manufacturing data raised recession fears. Data suggested that domestic demand was stronger than foreign demand and an employment measurement jumped. On Tuesday, U.S. stocks had slipped after a key gauge of the manufacturing sector signalled the first contraction of activity in three years.
Asian stocks bounced on Wednesday, led by Chinese markets after a report showed growth in the country’s service sector accelerating. The Shanghai Composite Index added 0.7% while the Hang Seng gained a whopping 3.36% after activity in China’s services sector expanded at the fastest pace in three months. While some markets in Asia enjoyed gains, sentiment in the wider region remained subdued amid worries about a global recession. Nikkei is about flat at 0.18% higher while ASX lost 0.31%.The 10-year U.S. Treasury yielded 1.474% after stooping to 1.481% on Tuesday, its lowest since July 2016.
Following the decline, the markets will be urging the Fed on to do more even though a September rate cut is already priced in. The dollar index against a basket of six major currencies stood at 98.938 after rising overnight to 99.37, its highest level since May 2017, having lost some ground in the wake of Tuesday’s poor ISM reading.
U.S. crude oil futures rose 0.74% to $54.34 per barrel, trimming some of the previous day’s large losses. The contracts had shed more than 2% on Tuesday after the weak U.S. ISM data raised concerns about a weakening global economy. Gold prices remained almost flat amid ongoing demand for safe-haven assets.
Upcoming Events:
- 8:00 am GMT – (EUR) Final Services PMI
- 8:30 am GMT – (GBP) Services PMI
- 9:00 am GMT – (EUR) Retail Sales m/m
- 12:30 pm GMT – (CAD) Trade Balance
- 12:30 pm GMT – (CAD) Labor Productivity q/q
- 12:30 pm GMT – (USD) Trade Balance
- 1:15 pm GMT – (GBP) Inflation Report Hearings
- 1:25 pm GMT – (USD) FOMC Member Williams Speaks
- 2:00 pm GMT – (CAD) BOC Rate Statement
- 2:00 pm GMT – (CAD) Overnight Rate
- All Day – (USD) Wards Total Vehicle Sales
- 4:30 pm GMT – (USD) FOMC Member Bullard Speaks
- 6:00 pm GMT – (USD) Beige Book
- 7:15 pm GMT – (USD) FOMC Member Evans Speaks
- &more…
