Global Markets:
- Asian Stock Markets : Nikkei up 2.22%, Shanghai Composite up 1.77%, Hang Seng up 0.38%, ASX up 0.98%
- Commodities : Gold at $1808.75 (+0.38%), Silver at $19.42 (+1.92%), Brent Oil at $42.80 (-1.02%), WTI Oil at $40.10 (-1.11%)
- Rates : US 10-year yield at 0.637, UK 10-year yield at 0.166, Germany 10-year yield at -0.459
News & Data:
- (USD) PPI m/m -0.20% vs 0.40% expected
- (USD) Core PPI m/m -0.30% vs 0.10% expected
- (CAD) Unemployment Rate 12.30% vs 12.00% expected
- (CAD) Employment Change 952.9K vs 700.0K expected
- China’s export slump to ease in June as economies reopen, imports fall less
- Australia’s Effective Unemployment Rate 13.3%, Frydenberg Says
CFTC Positioning Data:
- EUR long 104K vs 98K long last week
- GBP short 16K vs 21K short last week
- JPY long 17K vs 24K long last week
- CHF long 4K vs 4K long last week
- AUD short 1k vs 3K short last week
- NZD short 0K vs 0K short last week
- CAD short 17k vs 21K short last week.
Markets Update:
Asian stock markets are rising on Monday following the positive cues from Wall Street Friday as upbeat coronavirus treatment and vaccine news helped offset worries about the surge in new coronavirus cases worldwide.
Gilead Sciences said Friday that based on new data, its drug remdesivir showed a reduction in the risk of death in coronavirus patients. In addition, optimism about the corporate earnings season beginning this week also lifted stocks.
Mainland Chinese stocks were among the biggest gainers regionally on the day, as the Shenzhen component soared 1.8%. The strong moves upward for Chinese stocks came despite comments by U.S. President Donald Trump on Friday that the relationship between Washington and Beijing has been “severely damaged” by the coronavirus pandemic. Elsewhere, the Nikkei 225 in Japan rose 2.2%. Hong Kong’s Hang Seng index rose 0.4%. Meanwhile, Australia’s S&P/ASX 200 added 1%.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.416 after declining from levels above 96.9 last week. The hunt for yield has tended to benefit emerging market currencies and those leveraged to commodities such as the Australian dollar, while weighing on the U.S. dollar. Yields on U.S. 10-year notes came close to record lows last week at 0.569% and were last at 0.63%.
Upcoming Events:
Monday, July 13, 2020
- 03:30 PM GMT – (GBP) BOE Gov Bailey Speaks
Tuesday, July 14, 2020
- 01:30 AM GMT – (AUD) NAB Business Confidence
- Tentative – (CNY) Trade Balance
- Tentative – (CNY) USD-Denominated Trade Balance
- 06:00 AM GMT – (GBP) GDP m/m
- 12:30 PM GMT – (USD) CPI m/m
- 12:30 PM GMT – (USD) Core CPI m/m
Wednesday, July 15, 2020
- Tentative – (JPY) BOJ Outlook Report
- Tentative – (JPY) Monetary Policy Statement
- 06:00 AM GMT – (GBP) CPI y/y
- Tentative – (JPY) BOJ Press Conference
- 01:15 PM GMT – (USD) Industrial Production m/m
- 01:30 PM GMT – (CHF) SNB Chairman Jordan Speaks
- 02:00 PM GMT – (CAD) BOC Monetary Policy Report
- 02:00 PM GMT – (CAD) BOC Rate Statement
- 02:00 PM GMT – (CAD) Overnight Rate
- 02:30 PM GMT – (USD) Crude Oil Inventories
- 03:00 PM GMT – (CAD) BOC Press Conference
- 10:45 PM GMT – (NZD) CPI q/q
Thursday, July 16, 2020
- 01:30 AM GMT – (AUD) Employment Change
- 01:30 AM GMT – (AUD) Unemployment Rate
- 02:00 AM GMT – (CNY) GDP q/y
- 06:00 AM GMT – (GBP) Claimant Count Change
- 08:30 AM GMT – (GBP) BOE Credit Conditions Survey
- 11:45 AM GMT – (EUR) Main Refinancing Rate
- 11:45 AM GMT – (EUR) Monetary Policy Statement
- 12:30 PM GMT – (CAD) ADP Non-Farm Employment Change
- 12:30 PM GMT – (EUR) ECB Press Conference
- 12:30 PM GMT – (USD) Core Retail Sales m/m
- 12:30 PM GMT – (USD) Retail Sales m/m
- 12:30 PM GMT – (USD) Philly Fed Manufacturing Index
- 12:30 PM GMT – (USD) Unemployment Claims
Friday, July 17, 2020
- 10:00 AM GMT – (GBP) BOE Gov Bailey Speaks
- 02:00 PM GMT – (USD) Prelim UoM Consumer Sentiment
Saturday, July 18, 2020
- Day 1 – (All) G20 Meetings