Global Markets:
- Asian Stock Markets : Nikkei up 1.88%, Shanghai Composite up 2.68%, Hang Seng up 1.78%, ASX up 0.39%
- Commodities : Gold at $1326.45 (+0.33%), Silver at $15.78 (+0.22%), Brent Oil at $66.65 (+0.60%), WTI Oil at $56.45 (+0.84%)
- Rates : US 10-year yield at 2.664, UK 10-year yield at 1.164, Germany 10-year yield at 0.105
News & Data:
- (USD) Prelim UoM Consumer Sentiment 95.5 vs 93.3 expected
- (GBP) Retail Sales m/m 1.00% vs 0.20% expected
- (CNY) CPI y/y 1.70% vs 1.90% expected
- Salvini Says Not Concerned By Web Vote On Migrants: Says Govt Won’t Fall Over Migrant Issue: Repubblica
- S. agency submits auto tariff probe report to White House
Markets Update:
Asian stock markets are mostly higher on Monday following the positive cues from Wall Street Friday and higher commodity prices amid optimism about U.S.-China trade talks that are set to continue in Washington this week. A statement from the White House said high level U.S.-China trade talks this week led to “progress between the two parties”, but noted “much work remains.”
The mainland Chinese markets were higher by the end of the morning session. The Shanghai composite jumped around 2.7 percent while the Shenzhen component rose 3.8 percent. Japan’s Nikkei 225 jumped 1.9 percent in afternoon trade – touching the highest levels this year, while the Topix also advanced 1.6 percent. Shares of Fast Retailing, the company behind the Uniqlo chain of apparel stores, surged nearly 4 percent. Hong Kong’s Hang Seng index also gained 1.8 percent. Meanwhile, the Kospi in South Korea gained 0.7 percent as industry heavyweight Samsung Electronics saw its shares rise 0.3 percent.
The European Central Bank’s Olli Rehn told a German newspaper on Sunday that recent data point to a weakening euro zone economy and interest rates would remain at the current level until monetary policy goals have been met. That came amid much speculation the ECB would launch another round of Targeted Long-Term Refinancing Operations (TLTRO) to support bank lending. The risk of an easy ECB saw the euro touch a three-month low on Friday before then bouncing on dovish comments from Fed officials.
Sterling was a shade firmer at $1.2913 ahead of Brexit talks between British Prime Minister Theresa May and European Commission President Jean-Claude Juncker this week. All of which left the dollar down at 96.765 on a basket of currencies and away from last week’s top of 97.368. Oil prices reached their highest for the year so far, buoyed by OPEC-led supply cuts and U.S. sanctions on Iran and Venezuela.
Upcoming Events:
Tuesday, February 19, 2019
- 01:30 AM GMT – (AUD) Monetary Policy Meeting Minutes
- 10:30 AM GMT – (GBP) Average Earnings Index 3m/y
- 10:30 AM GMT – (GBP) Unemployment Rate
- 11:00 AM GMT – (EUR) German ZEW Economic Sentiment
Wednesday, February 20, 2019
- 01:30 AM GMT – (AUD) Wage Price Index q/q
- 08:00 PM GMT – (USD) FOMC Meeting Minutes
Thursday, February 21, 2019
- 01:30 AM GMT – (AUD) Employment Change
- 01:30 AM GMT – (AUD) Unemployment Rate
- 09:15 AM GMT – (EUR) French Flash Manufacturing PMI
- 09:15 AM GMT – (EUR) French Flash Services PMI
- 09:30 AM GMT – (EUR) German Flash Services PMI
- 09:30 AM GMT – (EUR) German Flash Manufacturing PMI
- 10:00 AM GMT – (EUR) Flash Manufacturing PMI
- 10:00 AM GMT – (EUR) Flash Services PMI
- 10:30 AM GMT – (GBP) Public Sector Net Borrowing
- 01:30 PM GMT – (EUR) ECB Monetary Policy Meeting Accounts
- 02:30 PM GMT – (USD) Core Durable Goods Orders m/m
- 02:30 PM GMT – (USD) Durable Goods Orders m/m
- 02:30 PM GMT – (USD) Philly Fed Manufacturing Index
- 06:35 PM GMT – (CAD) BOC Gov Poloz Speaks
- 11:30 PM GMT – (AUD) RBA Gov Lowe Speaks
Friday, February 22, 2019
- 10:00 AM GMT – (EUR) German Ifo Business Climate
- 02:30 PM GMT – (CAD) Core Retail Sales m/m
- 02:30 PM GMT – (CAD) Retail Sales m/m
- 04:15 PM GMT – (USD) FOMC Member Williams Speaks
- 04:30 PM GMT – (EUR) ECB President Draghi Speaks
- 06:00 PM GMT – (USD) FOMC Member Clarida Speaks
- 07:30 PM GMT – (USD) FOMC Member Bullard Speaks
- 07:30 PM GMT – (USD) FOMC Member Quarles Speaks
- 11:30 PM GMT – (USD) FOMC Member Williams Speaks
