Global Markets:
- Asian Stock Markets : Nikkei down 1.73%, Shanghai Composite down 1.33%, Hang Seng down 1.56%, ASX down 0.46%
- Commodities : Gold at $1215.40 (-0.30%), Silver at $15.27 (-0.20%), Brent Oil at $72.59 (-0.30%), WTI Oil at $67.58 (-0.07%)
- Rates : US 10-year yield at 2.868, UK 10-year yield at 1.246, Germany 10-year yield at 0.318
News & Data:
- (USD) Core CPI m/m 0.20% vs 0.20% expected
- (USD) CPI m/m 0.20% vs 0.20% expected
- (CAD) Unemployment Rate 5.80% vs 5.90% expected
- (CAD) Employment Change 54.1K vs 17.0K expected
- (GBP) Prelim Business Investment q/q 0.50% vs 0.30% expected
- (GBP) Goods Trade Balance -11.4B vs -12.0B expected
- (GBP) Prelim GDP q/q 0.40% vs 0.40% expected
- (GBP) Manufacturing Production m/m 0.40% vs 0.30% expected
- (GBP) GDP m/m 0.10% vs 0.20% expected
- Turkish central bank: Will continue to monitor markets, take all necessary measures
- Euro touches lowest in more than a year as Turkey effect continues
CFTC Positioning Data (Week Ending Aug 7ty, 2018):
- EUR long 11K vs 23K long last week.
- GBP short 59K vs 47K short last week.
- JPY short 63K vs 68K short last week.
- CHF short 46K vs 44K short last week.
- CAD short 25K vs 32K short last week.
- AUD short 54k vs 51K short last week.
- NZD short 25K vs 24K short last week.
Markets Update:
Asian stock markets are in negative territory on Monday as the ongoing turmoil in Turkey and the fresh fall in the Turkish lira sparked concerns of contagion fears. Tensions between the U.S. and Turkey haven risen due to Turkish detention of U.S. pastor Andrew Brunson and as U.S. President Donald Trump announced that he has authorized the doubling on steel and aluminum tariffs on Turkey.
Asia share markets skidded and the euro hit one-year lows on Monday as a renewed rout in the Turkish lira infected the South African rand and drove demand for safe harbours, including the U.S. dollar, Swiss franc and yen.
The Japanese market is notably lower, tracking the weak cues from Wall Street and a stronger safe-haven yen amid the ongoing turmoil in Turkey; exporter stocks traded lower in the morning, with automakers and electric appliances taking a hit.
Chinese shares were also dented, with the Shanghai Composite and CSI 300 both losing upwards of 1.25%. Hong Kong's Hang Seng Index, meanwhile, fell by as much as 1.5 percent as all sectors recorded steep declines. The falls in Australia were accentuated by mixed corporate earnings results.
Much of the early action was in currencies with the euro gapping lower as the Turkish lira took another slide to all-time lows around 7.2400. Against the U.S. dollar, the euro touched its lowest since July 2017 at $1.13700. The dollar eased against the safe haven yen to 110.21, but was a shade firmer against a basket of currencies at 96.431.
The Argentine peso and South African rand were also caught in the crossfire, with the dollar adding 5 percent on the rand. Dealers said Japanese retail investors had been squeezed out of long positions in the rand sending the yen steaming higher. In commodity markets, gold found little in the way of safety flows and was last down at $1,208.21 an ounce.
Upcoming Events:
Tuesday, August 14th 2018
- 02:30 AM GMT – (AUD) NAB Business Confidence
- 03:00 AM GMT – (CNY) Fixed Asset Investment ytd/y
- 03:00 AM GMT – (CNY) Industrial Production y/y
- 07:00 AM GMT – (EUR) German Prelim GDP q/q
- 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) Flash GDP q/q
- 10:00 AM GMT – (EUR) German ZEW Economic Sentiment
Wednesday, August 15th 2018
- 02:30 AM GMT – (AUD) Wage Price Index q/q
- 09:30 AM GMT – (GBP) CPI y/y
- 09:30 AM GMT – (GBP) PPI Input m/m
- 09:30 AM GMT – (GBP) RPI y/y
- 01:30 PM GMT – (USD) Core Retail Sales m/m
- 01:30 PM GMT – (USD) Retail Sales m/m
- 01:30 PM GMT – (USD) Empire State Manufacturing Index
- 01:30 PM GMT – (USD) Prelim Nonfarm Productivity q/q
- 01:30 PM GMT – (USD) Prelim Unit Labor Costs q/q
- 02:15 PM GMT – (USD) Capacity Utilization Rate
- 02:15 PM GMT – (USD) Industrial Production m/m
- 03:30 PM GMT – (USD) Crude Oil Inventories
Thursday, August 16th 2018
- 02:30 AM GMT – (AUD) Employment Change
- 02:30 AM GMT – (AUD) Unemployment Rate
- 09:30 AM GMT – (GBP) Retail Sales m/m
- 01:30 PM GMT – (CAD) Manufacturing Sales m/m
- 01:30 PM GMT – (USD) Building Permits
- 01:30 PM GMT – (USD) Housing Starts
- 01:30 PM GMT – (USD) Philly Fed Manufacturing Index
- 01:30 PM GMT – (USD) Unemployment Claims
- 11:45 PM GMT – (NZD) PPI Input q/q
Friday, August 17th 2018
- 12:30 AM GMT – (AUD) RBA Gov Lowe Speaks
- 08:30 AM GMT – (AUD) RBA Assist Gov Ellis Speaks
- 10:00 AM GMT – (EUR) Final CPI y/y
- 01:30 PM GMT – (CAD) CPI m/m
- 01:30 PM GMT – (CAD) Common CPI y/y
- 01:30 PM GMT – (CAD) Foreign Securities Purchases
- 01:30 PM GMT – (CAD) Median CPI y/y
- 01:30 PM GMT – (CAD) Trimmed CPI y/y
- 03:00 PM GMT – (USD) Prelim UoM Consumer Sentiment
