Global Markets:
- Asian Stock Markets : Nikkei up 0.27%, Shanghai Composite down 0.97%, Hang Seng down 1.47%, ASX down 0.02%
- Commodities : Gold at $1197.00 (-0.28%), Silver at $14.12 (-0.39%), Brent Oil at $77.21 (+0.49%), WTI Oil at $68.08 (+0.49%)
- Rates : US 10-year yield at 2.937, UK 10-year yield at 1.462, Germany 10-year yield at 0.389
News & Data:
- (CNY) CPI y/y 2.30% vs 2.10% expected
- (CNY) Trade Balance 180B vs 183B expected
- (CAD) Ivey PMI 61.9 vs 61.5 expected
- (USD) Unemployment Rate 3.90% vs 3.80% expected
- (USD) Non-Farm Employment Change 201K vs 191K expected
- (USD) Average Hourly Earnings m/m 0.40% vs 0.20% expected
- (CAD) Unemployment Rate 6.00% vs 5.90% expected
- (CAD) Employment Change -51.6K vs 5.1K expected
- Stronger U.S. economy may warrant 'restrictive' rates: Boston Fed's Rosengren
CFTC Positioning Data (Week Ending AUG 28th, 2018):
- EUR long 8K vs 7K short last week. Position turns to long from short (15K change)
- GBP short 70K vs 77K short last week. Shorts trimmed 7K
- JPY short 52K vs 46K short last week. Shorts increased 6K
- CHF short 40K vs 45K short last week. Shorts trimmed 5K
- CAD short 26K vs 25K short last week. Shorts increased 1K
- AUD short 44k vs 45k short last week. Shorts trimmed 1K
- NZD short 25K vs 24K short last week. Shorts increases 1K
Markets Update:
Asian shares started the week in the red on Monday, faltering for the eighth straight day while the dollar climbed as U.S. President Donald Trump raised the stakes in the heated trade dispute with China. President Trump suggested he may impose tariffs on another $267 billion worth of Chinese goods. His administration is already considering imposing tariffs on $200 billion worth of Chinese goods following the expiration of a public comment period at midnight on Thursday.
Japan’s Nikkei opened lower but quickly pared losses after revised second-quarter gross domestic product data showed the world’s third-biggest economy grew at its fastest pace since 2016. The Greater China markets, however, remained in largely negative territory despite making a slight recovery from their morning lows, with Hong Kong's Hang Seng index still down by 1.5 percent.
Over on the mainland, the Shanghai composite was lower by 1 percent while the Shenzhen composite fell by around 1.08 percent. The Australian market is extending its losing streak to an eighth straight session following the negative cues from Wall Street Friday. Mining stocks are weak despite steady iron ore pries as well as slightly higher copper prices.
The Australian dollar, a proxy for emerging market growth, hovered near its lowest in 2-1/2 years. The currency fell 1.3 percent on Friday and was last at $0.7107. The euro held at $1.15505 after two straight sessions of losses while the yen traded in a narrow range, changing hands at 110.96. In commodities, oil prices were firmer after three straight days of losses, with U.S. crude futures up 44 cents at $68.19 per barrel. Brent crude futures added 48 cents to $77.31 a barrel.
Upcoming Events:
Monday, September 10th 2018
- 02:30 AM GMT – (CNY) CPI y/y
- 04:05 AM GMT – (AUD) RBA Assist Gov Bullock Speaks
- 09:30 AM GMT – (GBP) GDP m/m
- 09:30 AM GMT – (GBP) Manufacturing Production m/m
- 09:30 AM GMT – (GBP) Goods Trade Balance
- Tentative – (USD) FOMC Member Bostic Speaks
Tuesday, September 11th 2018
- 02:30 AM GMT – (AUD) NAB Business Confidence
- 09:30 AM GMT – (GBP) Average Earnings Index 3m/y
- 09:30 AM GMT – (GBP) Claimant Count Change
- 09:30 AM GMT – (GBP) Unemployment Rate
- 10:00 AM GMT – (EUR) German ZEW Economic Sentiment
Wednesday, September 12th 2018
- 01:30 PM GMT – (USD) PPI m/m
- 01:30 PM GMT – (USD) Core PPI m/m
- 03:30 PM GMT – (USD) Crude Oil Inventories
- 05:45 PM GMT – (USD) FOMC Member Brainard Speaks
Thursday, September 13th 2018
- 02:30 AM GMT – (AUD) Employment Change
- 02:30 AM GMT – (AUD) Unemployment Rate
- 12:00 PM GMT – (GBP) MPC Official Bank Rate Votes
- 12:00 PM GMT – (GBP) Monetary Policy Summary
- 12:00 PM GMT – (GBP) Official Bank Rate
- 12:00 PM GMT – (GBP) Asset Purchase Facility
- 12:00 PM GMT – (GBP) MPC Asset Purchase Facility Votes
- 12:45 PM GMT – (EUR) Main Refinancing Rate
- 01:30 PM GMT – (CAD) NHPI m/m
- 01:30 PM GMT – (EUR) ECB Press Conference
- 01:30 PM GMT – (USD) CPI m/m
- 01:30 PM GMT – (USD) Core CPI m/m
- 03:00 PM GMT – (USD) FOMC Member Quarles Speaks
- 06:15 PM GMT – (USD) FOMC Member Bostic Speaks
- 11:30 PM GMT – (NZD) Business NZ Manufacturing Index
Friday, September 14th 2018
- 03:00 AM GMT – (CNY) Fixed Asset Investment ytd/y
- 03:00 AM GMT – (CNY) Industrial Production y/y
- 11:00 AM GMT – (GBP) BOE Gov Carney Speaks
- 01:30 PM GMT – (USD) Core Retail Sales m/m
- 01:30 PM GMT – (USD) Retail Sales m/m
- 03:00 PM GMT – (USD) Prelim UoM Consumer Sentiment
