Global Markets:
- Asian Stock Markets : Nikkei down 0.01%, Shanghai Composite up 0.61%, Hang Seng down 0.52%, ASX down 0.05%
- Commodities : Gold at $1322.85 (-0.18%), Silver at $15.97 (-0.65%), Brent Oil at $60.95 (+0.18%), WTI Oil at $53.84 (+0.09%)
- Rates : US 10-year yield at 2.631, UK 10-year yield at 1.221, Germany 10-year yield at 0.146
News & Data:
- (CNY) Caixin Manufacturing PMI 48.3 vs 49.5 expected
- (USD) Chicago PMI 56.7 vs 61.5 expected
- (USD) Employment Cost Index q/q 0.70% vs 0.80% expected
- (CAD) RMPI m/m 3.80% vs 3.90% expected
- (CAD) GDP m/m -0.10% vs -0.10% expected
- (EUR) Prelim Flash GDP q/q 0.20% vs 0.20% expected
- (EUR) Spanish Flash GDP q/q 0.70% vs 0.60% expected
- (CNY) Manufacturing PMI 49.5 vs 49.3 expected
- China says ‘important progress’ made in trade talks with the US – says it will buy substantially more agricultural and energy goods
- Yuan Plunges After China Caixin PMI Tumbles To 3 Year Low; Biggest Drop On Record
Markets Update:
Asian stock markets are mostly higher on Friday following the mostly positive cues overnight from Wall Street amid upbeat corporate earnings results and on optimism about U.S.-China trade talks.
However, most of the markets have pared early gains and are now modestly higher after a private survey showed that China’s manufacturing activity contracted more than expected in January, reinforcing fears of a slowdown in the world’s second-largest economy. Investors are also cautious as they look ahead to the U.S. jobs data for January due later in the day.
Japan’s Nikkei 225 was near flat at 20,778 after a business survey showed. Meanwhile, the country’s seasonally adjusted unemployment rate fell to 2.4% in December from 2.5% last month, matching the median estimate. The Shanghai Composite and the Shenzhen Component gained 0.6% and 1.5%. Hong Kong’s Hang Seng Index edged down 0.5%. South Korea’s KOSPI edged up 0.2%. Down under, Australia’s ASX 200 traded flat.
Yields on two-year Treasuries were down 14 basis points on the week so far, which if sustained would be the largest weekly decline since mid-2010. The Euro took a knock when Bundesbank president Jens Weidmann painted an unusually bleak picture of the German economy, saying the country’s slump will last longer than initially thought.
Oil prices were subdued as the poor China data offset signs major exporters were quickly reducing output in line with a pact to cut supply.
Upcoming Events:
- 10:30 AM GMT – (GBP) Manufacturing PMI
- 11:00 AM GMT – (EUR) CPI Flash Estimate y/y
- 11:00 AM GMT – (EUR) Core CPI Flash Estimate y/y
- 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
- 04:00 PM GMT – (USD) ISM Manufacturing PMI
- 04:00 PM GMT – (USD) Revised UoM Consumer Sentiment
- &more…
