Global Markets:
- Asian Stock Markets : Nikkei up 0.48%, Shanghai Composite up 0.24%, Hang Seng up 0.47%, ASX up 1.03%
- Commodities : Gold at $1769.80 (+0.77%), Silver at $17.67 (+3.53%), Brent Oil at $33.77 (+3.91%), WTI Oil at $31.02 (+5.08%)
- Rates : US 10-year yield at 0.638, UK 10-year yield at 0.206, Germany 10-year yield at -0.548
News & Data:
- (USD) Prelim UoM Consumer Sentiment 73.7 vs 68 expected
- (USD) Retail Sales m/m -16.40% vs -12.00% expected
- (USD) Core Retail Sales m/m -17.20% vs -8.60% expected
- (EUR) German Prelim GDP q/q -2.20% vs -2.20% expected
- (CNY) Industrial Production y/y 3.90% vs 1.50% expected
- (CNY) Fixed Asset Investment ytd/y -10.30% vs -9.80% expected
CFTC Positioning Data:
- EUR long 76K vs 80K long last week. Shorts trimmed by 4K
- EUR long 78K vs 76K long last week. Shorts increased by 2K
- GBP short 14K vs 12K short last week. Shorts increased by 2K
- JPY long 28K vs 27K long last week. Longs increased by 1K
- CHF long 7K vs 8K long last week. Longs trimmed by 1K
- AUD short 35k vs 33K short last week. Shorts increased by 2K
- NZD short 16K vs 15K short last week. Shorts increased by 1K
- CAD short 32k vs 32K short last week. Unchanged for the week.
Markets Update:
Asian stock markets are mostly higher on Monday following the positive cues from Wall Street Friday in a volatile session and on higher commodity prices. Optimism as more countries reopen their economies following coronavirus-induced lockdowns and hopes of more global stimulus measures also lifted stocks. Data out on Friday showed retail sales and industrial production both plunged in April, putting the U.S. economy on track for its deepest contraction since the Great Depression.
In Australia, the S&P/ASX 200 finished its trading day 1%. Gold miners are higher after gold prices extended gains to a fourth session on Friday. Japan’s Nikkei 225 closed 0.5% higher while the Topix index rose 0.4%. Data in Japan confirmed the world’s third largest economy slipped into recession in the first quarter, putting it on course for its worst postwar slump as the coronavirus takes a heavy toll. Mainland Chinese stocks were mixed on the day, with the Shanghai composite up 0.2% while the Shenzhen composite shed 0.4%.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 100.338 after seeing highs around 100.5 last week. In commodity markets, the flood of liquidity from central banks combined with record-low interest rates to help lift gold to a seven-year peak. Oil prices rose as demand picked up as countries around the world eased travel restrictions, with U.S. oil showing no signs of last month’s price rout ahead of the expiry of the June WTI contract on Tuesday.
Upcoming Events:
Tuesday, May 19, 2020
- 01:30 AM GMT – (AUD) Monetary Policy Meeting Minutes
- 06:00 AM GMT – (GBP) Claimant Count Change
- 12:30 PM GMT – (USD) Building Permits
- 02:00 PM GMT – (USD) Fed Chair Powell Testifies
Wednesday, May 20, 2020
- 06:00 AM GMT – (GBP) CPI y/y
- 12:30 PM GMT – (CAD) CPI m/m
- 01:30 PM GMT – (GBP) BOE Gov Bailey Speaks
- 06:00 PM GMT – (USD) FOMC Meeting Minutes
Thursday, May 21, 2020
- 02:30 AM GMT – (AUD) RBA Gov Lowe Speaks
- 08:30 AM GMT – (GBP) Flash Services PMI
- 08:30 AM GMT – (GBP) Flash Manufacturing PMI
- 12:30 PM GMT – (USD) Philly Fed Manufacturing Index
- 12:30 PM GMT – (USD) Unemployment Claims
- 01:45 PM GMT – (USD) Flash Manufacturing PMI
- 06:30 PM GMT – (USD) Fed Chair Powell Speaks
- 10:45 PM GMT – (NZD) Retail Sales q/q
Friday, May 22, 2020
- 06:00 AM GMT – (GBP) Retail Sales m/m
- 07:15 AM GMT – (EUR) French Flash Services PMI
- 07:15 AM GMT – (EUR) French Flash Manufacturing PMI
- 07:30 AM GMT – (EUR) German Flash Manufacturing PMI
- 07:30 AM GMT – (EUR) German Flash Services PMI
- 08:00 AM GMT – (EUR) Flash Manufacturing PMI
- 08:00 AM GMT – (EUR) Flash Services PMI
- 11:30 AM GMT – (EUR) ECB Monetary Policy Meeting Accounts
- 12:30 PM GMT – (CAD) Core Retail Sales m/m