Global Markets:
- Asian Stock Markets : Nikkei up 0.50%, Shanghai Composite up 0.18%, Hang Seng up 1.46%, ASX up 0.17%
- Commodities : Gold at $1767.40 (+0.06%), Silver at $17.88 (-0.15%), Brent Oil at $43.28 (+0.46%), WTI Oil at $40.87 (+0.34%)
- Rates : US 10-year yield at 0.709, UK 10-year yield at 0.212, Germany 10-year yield at -0.422
News & Data:
- (EUR) German Flash Services PMI 45.8 vs 41.7 expected
- (EUR) German Flash Manufacturing PMI 44.6 vs 41.5 expected
- (EUR) French Flash Manufacturing PMI 52.1 vs 46.1 expected
- (EUR) French Flash Services PMI 50.3 vs 44.9 expected
- US Home Sales Plunged Most since 2008, Condos -41%. First-Ever April-May Price Drop in Normally Red-Hot Spring Selling Season
- Pandemic keeps Japan’s June manufacturing activity pinned at 11-year low – PMI
Markets Update:
Asian stock markets are mostly higher on Tuesday following the positive cues overnight from Wall Street amid optimism about a quick economic recovery from the coronavirus-induced setback. Investor sentiment also received a boost after White House trade advisor Peter Navarro clarified that the U.S.-China trade deal remains in place. Stocks had dropped earlier after media reports quoted Navarro as telling Fox News in an interview that the U.S. trade deal with China was “over”.
In Japan, the Nikkei 225 and the Topix both rose 0.5%. Mainland Chinese stocks were higher on the day, with the Shanghai composite up 0.2% while the Shenzhen component rose 0.8%. Hong Kong’s Hang Seng index rose 1.5%. Meanwhile, the S&P/ASX 200 in Australia closed 0.2% higher.
Safe-haven gold, which initially rose on Navarro’s remarks, sold off on the clarification, while risk sensitive currencies staged a recovery. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.016 after touching an earlier high of 97.245.
Upcoming Events:
- 08:30 AM GMT – (GBP) Flash Manufacturing PMI
- 08:30 AM GMT – (GBP) Flash Services PMI
- 08:45 AM GMT – (GBP) BOE Gov Bailey Speaks
- 01:45 PM GMT – (USD) Flash Manufacturing PMI