Global Markets:
- Asian Stock Markets : Nikkei down 3.47%, Shanghai Composite down 1.02%, Hang Seng down 2.24%, ASX down 2.19%
- Commodities : Gold at $1724.85 (-0.72%), Silver at $17.26 (-1.26%), Brent Oil at $37.66 (-2.76%), WTI Oil at $34.78 (-4.08%)
- Rates : US 10-year yield at 0.664, UK 10-year yield at 0.178, Germany 10-year yield at -0.465
News & Data:
- (CNY) Industrial Production y/y 4.40% vs 5.00% expected
- (CNY) Fixed Asset Investment ytd/y -6.30% vs -6.00% expected
- (USD) Prelim UoM Consumer Sentiment 78.9 vs 75 expected
- (GBP) Manufacturing Production m/m -24.30% vs -15.00% expected
- (GBP) GDP m/m -20.40% vs -18.60% expected
- Traders Gear Up for Hong Kong to Defend Dollar Peg for 7th Day
- China opens $45 trillion financial market as US closes
CFTC Positioning Data:
- EUR long 96K vs 81K long last week. Longs increased by 15K.
- GBP short 24K vs 36K short last week. Shorts trimmed by 12K.
- JPY long 17K vs 33K long last week. Longs trimmed by 16K.
- CHF long 2K vs 9K long last week. Longs trimmed by 7K.
- AUD short 37k vs 41K short last week. Shorts trimmed by 4K
- NZD short 11K vs 13K short last week. Shorts trimmed by 2K
- CAD short 25k vs 33K short last week. Shorts trimmed by 8K.
Markets Update:
Asian stock markets are mostly lower on Monday despite the positive cues from Wall Street on Friday, as worries about a second wave of coronavirus infections amid the reopening of economies weighed on sentiment.
China as well as the U.S. states of Texas and North Carolina reported rising number of coronavirus infections during the weekend. In addition, data released on Monday showed that China’s industrial output and retail sales for May missed expectations.
In Japan, Nikkei 225 dropped 3.5% while the Topix index slipped 2.5%. Over in South Korea, the Kospi plunged 4.8%. Mainland Chinese stocks were lower on the day, with the Shanghai composite down 1.% while the Shenzhen component dipped 0.53%. Hong Kong’s Hang Seng index declined 2.2%.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 97.363 after rising from levels below 96.5 last week. The Chinese yuan extended losses in offshore trade after the data to be last at 7.0883 per dollar. Oil investors await OPEC+ committee meetings of experts later this week who will advise the producer group and its allies on output cuts.
Upcoming Events:
Tuesday, June 16, 2020
- 01:30 AM GMT – (AUD) Monetary Policy Meeting Minutes
- Tentative – (JPY) Monetary Policy Statement
- 06:00 AM GMT – (GBP) Claimant Count Change
- Tentative – (JPY) BOJ Press Conference
- 12:30 PM GMT – (USD) Core Retail Sales m/m
- 12:30 PM GMT – (USD) Retail Sales m/m
- 02:00 PM GMT – (USD) Fed Chair Powell Testifies
Wednesday, June 17, 2020
- 06:00 AM GMT – (GBP) CPI y/y
- 12:30 PM GMT – (CAD) CPI m/m
- 12:30 PM GMT – (CAD) Common CPI y/y
- 12:30 PM GMT – (CAD) Median CPI y/y
- 12:30 PM GMT – (CAD) Trimmed CPI y/y
- 12:30 PM GMT – (USD) Building Permits
- 04:00 PM GMT – (USD) Fed Chair Powell Testifies
- 10:45 PM GMT – (NZD) GDP q/q
Thursday, June 18, 2020
- 01:30 AM GMT – (AUD) Employment Change
- 01:30 AM GMT – (AUD) Unemployment Rate
- Tentative – (CHF) SNB Financial Stability Report
- 07:30 AM GMT – (CHF) SNB Monetary Policy Assessment
- 07:30 AM GMT – (CHF) SNB Press Conference
- 07:30 AM GMT – (CHF) SNB Policy Rate
- 11:00 AM GMT – (GBP) Asset Purchase Facility
- 11:00 AM GMT – (GBP) MPC Asset Purchase Facility Votes
- 11:00 AM GMT – (GBP) MPC Official Bank Rate Votes
- 11:00 AM GMT – (GBP) Monetary Policy Summary
- 11:00 AM GMT – (GBP) Official Bank Rate
- 12:30 PM GMT – (CAD) ADP Non-Farm Employment Change
- 12:30 PM GMT – (USD) Philly Fed Manufacturing Index
- 12:30 PM GMT – (USD) Unemployment Claims
- 02:00 PM GMT – (USD) CB Leading Index m/m
Friday, June 19, 2020
- 01:30 AM GMT – (AUD) Retail Sales m/m
- 06:00 AM GMT – (GBP) Retail Sales m/m
- 12:30 PM GMT – (CAD) Core Retail Sales m/m
- 12:30 PM GMT – (CAD) Retail Sales m/m
- 05:00 PM GMT – (USD) Fed Chair Powell Speaks