Global Markets:
- Asian Stock Markets : Nikkei down 0.77%, Shanghai Composite up 0.14%, Hang Seng down 0.19%, ASX up 0.58%
- Commodities : Gold at $1508.75 (-0.43%), Silver at $17.68 (-1.31%), Brent Oil at $62.23 (-0.81%), WTI Oil at $56.16 (-0.44%)
- Rates : US 10-year yield at 1.703, UK 10-year yield at 0.525, Germany 10-year yield at -0.576
News & Data:
- (GBP) GfK Consumer Confidence -12 vs -14 expected
- (USD) Natural Gas Storage 102B vs 90B expected
- (USD) Pending Home Sales m/m 1.60% vs -1.00% expected
- (USD) Unemployment Claims 213K vs 210K expected
- (USD) Prelim Wholesale Inventories m/m 0.40% vs 0.10% expected
- (USD) Goods Trade Balance -72.8B vs -73.3B expected
- (USD) Final GDP Price Index q/q 2.40% vs 2.40% expected
- (USD) Final GDP q/q 2.00% vs 2.00% expected
- (EUR) Private Loans y/y 3.40% vs 3.40% expected
- (EUR) M3 Money Supply y/y 5.70% vs 5.10% expected
Markets Update:
Asian stock markets are mostly lower on Friday following the negative cues overnight from Wall Street amid renewed political uncertainty in the U.S. following the release of the whistleblower complaint that sparked the impeachment inquiry into U.S. President Donald Trump. The document outlined concerns about Trump “using the power of his office to solicit interference from a foreign country in the 2020 U.S. election.” Investors also remained cautious following mixed news headlines on the US-China trade front.
Mainland Chinese stocks traded mixed earlier in the day, however, by afternoon, both the Shanghai Composite and the Shenzhen Component index were firmly in the green – with 0.1% and 0.8% gains respectively. China’s industrial profits for August dropped 2% from a year earlier, according to the country’s National Bureau of Statistics. That followed a 2.6% gain in July and a 3.1% in June. In Hong Kong, the Hang Seng index slipped 0.2%.
Japan’s Nikkei 225 slipped 0.8% as shares of index heavyweight and conglomerate Softbank Group fell 2%. The Topix index also shed 1.2%. Shares of Apple supplier Japan Display plunged more than 8% after the company said Thursday Chinese investment firm Harvest Group would withdraw from a bailout. The Australian market is advancing as investors shrugged off the negative cues from Wall Street. Optimism about U.S.-China trade talks helped boost sentiment, with the ASX gaining 0.6%.
In the currency market, the euro hovered near a 2-1/2-year low amid concerns about sluggish growth in the currency bloc, with rising fear of recession in its biggest economy, Germany. Some market participants suspect the dollar was also helped by continued tightness in dollar funding after U.S. short-term borrowing costs shot up last week.
Oil prices fell on Friday as signs of the rapid return of output from Saudi Arabia, the world’s biggest exporter, after a Sept. 14 attack on its production facilities reduced concerns about potential supply disruptions.
Upcoming Events:
- 07:00 AM GMT – (GBP) MPC Member Saunders Speaks
- 12:30 PM GMT – (USD) Core Durable Goods Orders m/m
- 12:30 PM GMT – (USD) Personal Spending m/m
- 12:30 PM GMT – (USD) Core PCE Price Index m/m
- 12:30 PM GMT – (USD) Durable Goods Orders m/m
- 12:30 PM GMT – (USD) FOMC Member Quarles Speaks
