Global Markets:
- Asian Stock Markets : Nikkei down 0.29%, Shanghai Composite up 0.56%, Hang Seng down 0.28%, ASX up 1.63%
- Commodities : Gold at $1481.10 (-0.01%), Silver at $17.08 (+0.39%), Brent Oil at $65.08 (-0.21%), WTI Oil at $59.84 (-0.23%)
- Rates : US 10-year yield at 1.835, UK 10-year yield at 0.785, Germany 10-year yield at -0.287
News & Data:
- (CNY) Industrial Production y/y 6.20% vs 5.10% expected
- (CNY) Fixed Asset Investment ytd/y 5.20% vs 5.20% expected
- (USD) Retail Sales m/m 0.20% vs 0.50% expected
- (USD) Core Retail Sales m/m 0.10% vs 0.40% expected
- China Injects $2Billion Into Banking System as Loans Mature
- Australia’s Finance Minister: No Need for More Fiscal Stimulus
CFTC Positioning Data:
- EUR short 68K vs 69K short last week. Shorts trimmed by 1K
- GBP short 23K vs 30K short last week. Shorts trimmed by 7K
- JPY short 44K vs 48K short last week. Shorts trimmed by 4k
- CHF short 21K vs 22K short last week. Shorts trimmed by 1K
- AUD short 37k vs 36K short last week. Shorts increased by 1K
- NZD short 25K vs 27K short last week. Shorts trimmed by 2K
- CAD long 21k vs 21K long last week. No change.
Markets Update:
Asian stock markets are mixed lower on Monday despite the U.S. and China announcing on Friday that they have reached a phase one trade deal. Investors are cautious as they awaited further details of the partial trade pact and shrugged off data that showed China’s industrial production as well as retail sales rose more than expected in November.
U.S. Trade Representative Robert Lighthizer said on Sunday that the phase one U.S.-China trade deal is “totally done” and will nearly double U.S. exports to China over the next two years.
Japan’s Nikkei 225 edged down 0.3% after a strong rally on Friday, and the Topix index was down 0.2%. Autos fell, reversing gains they made last week on the back of Brexit optimism. In South Korea, the Kospi was flat. Australia’s S&P/ASX 200 jumped 1.63%, led by banks and major miners. The Shanghai composite rose 0.6%, as the Shenzhen component jumped over 1.5%. Hong Kong’s Hang Seng index, however, was down 0.3%.
U.S. Treasury yields moved higher on Monday, reflecting a more positive mood. Benchmark 10-year Treasury notes rose to 1.835% compared with their U.S. close of 1.821% on Friday. The dollar index, which tracks the greenback against a basket of six major rivals, was down 0.12% at 97.053.
Oil prices, which had risen on Friday following the deal, cooled in early Asian trade on Monday.
Upcoming Events:
Monday, December 16, 2019
- 02:00 AM GMT – (CNY) Fixed Asset Investment ytd/y
- 02:00 AM GMT – (CNY) Industrial Production y/y
- 08:15 AM GMT – (EUR) French Flash Services PMI
- 08:15 AM GMT – (EUR) French Flash Manufacturing PMI
- 08:30 AM GMT – (EUR) German Flash Manufacturing PMI
- 08:30 AM GMT – (EUR) German Flash Services PMI
- 09:00 AM GMT – (EUR) Flash Manufacturing PMI
- 09:00 AM GMT – (EUR) Flash Services PMI
- 09:30 AM GMT – (GBP) Flash Manufacturing PMI
- 09:30 AM GMT – (GBP) Flash Services PMI
- 02:45 PM GMT – (USD) Flash Manufacturing PMI
- 04:00 PM GMT – (GBP) Bank Stress Test Results
- 04:00 PM GMT – (GBP) BOE Financial Stability Report
Tuesday, December 17, 2019
- 12:00 AM GMT – (NZD) ANZ Business Confidence
- 12:30 AM GMT – (AUD) Monetary Policy Meeting Minutes
- 09:30 AM GMT – (GBP) Average Earnings Index 3m/y
- 01:30 PM GMT – (CAD) Manufacturing Sales m/m
- 01:30 PM GMT – (USD) Building Permits
Wednesday, December 18, 2019
- 08:30 AM GMT – (EUR) ECB President Lagarde Speaks
- 09:00 AM GMT – (EUR) German Ifo Business Climate
- 09:30 AM GMT – (GBP) CPI y/y
- 09:30 AM GMT – (GBP) PPI Input m/m
- 01:30 PM GMT – (CAD) CPI m/m
- 01:30 PM GMT – (CAD) Common CPI y/y
- 01:30 PM GMT – (CAD) Median CPI y/y
- 01:30 PM GMT – (CAD) Trimmed CPI y/y
- 03:30 PM GMT – (USD) Crude Oil Inventories
- 09:45 PM GMT – (NZD) GDP q/q
Thursday, December 19, 2019
- 12:30 AM GMT – (AUD) Employment Change
- 12:30 AM GMT – (AUD) Unemployment Rate
- Tentative – (JPY) Monetary Policy Statement
- Tentative – (JPY) BOJ Press Conference
- 09:30 AM GMT – (GBP) Retail Sales m/m
- 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
- 01:30 PM GMT – (USD) Philly Fed Manufacturing Index
Friday, December 20, 2019
- 09:30 AM GMT – (GBP) Current Account
- 09:30 AM GMT – (GBP) Final GDP q/q
- 11:00 AM GMT – (GBP) MPC Member Haskel Speaks
- 01:30 PM GMT – (CAD) Core Retail Sales m/m
- 01:30 PM GMT – (CAD) Retail Sales m/m
- 01:30 PM GMT – (USD) Final GDP q/q
- 03:00 PM GMT – (USD) Core PCE Price Index m/m
- 03:00 PM GMT – (USD) Personal Spending m/m
- Tentative – (USD) Treasury Currency Report
- &more…