Global Markets:
- Asian Stock Markets : Nikkei down 0.74%, Shanghai Composite down 0.04%, Hang Seng down 1.11%, ASX down 1.89%
- Commodities : Gold at $1737.40 (-0.14%), Silver at $17.71 (-0.99%), Brent Oil at $37.41 (-2.96%), WTI Oil at $35.11 (-3.38%)
- Rates : US 10-year yield at 0.684, UK 10-year yield at 0.194, Germany 10-year yield at -0.432
News & Data:
- (GBP) Manufacturing Production m/m -24.30% vs -15.00% expected
- (GBP) GDP m/m -20.40% vs -18.60% expected
- (USD) Unemployment Claims 1542K vs 1550K expected
- (USD) PPI m/m 0.40% vs 0.10% expected
- (USD) Core PPI m/m -0.10% vs -0.10% expected
- Japan’s Aso: Economy likely hit bottom
Markets Update:
Asian stocks tumbled in cautious trade on Friday amid concerns that a second wave of coronavirus in the United States could derail economic recovery. About half a dozen American states including Texas and Arizona are grappling with a rising number of coronavirus patients filling hospital beds, reflecting increased testing and loosening of the social distancing restrictions.
Europe is also expected to see a surge of Covid-19 infections in the coming two weeks caused by mass protests in the continent to protest the killing of George Floyd.
China’s Shanghai Composite index traded flat as investors reassessed the global growth outlook. Hong Kong’s Hang Seng index was down over 1.1 percent. Japan’s Nikkei average was down 0.7 percent as the yen hit a one-month high against the dollar after a rout in U.S. shares amid reports of rising coronavirus cases in some states that have reopened. Meanwhile, Australia’s S&P/ASX 200 declined 1.9%.
The spread between two- and 10-year Treasury yields has narrowed to 48 basis points from a three-month high of 72 basis points reached last week as investors scale back their bets that the U.S. economy will improve. The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 96.762 after rising from levels around 96 earlier.
Upcoming Events:
- 02:00 PM GMT – (USD) Prelim UoM Consumer Sentiment