Monday 20th August: Asian Markets mixed as investors look to US-China trade talks

Global Markets:

• Asian Stock Markets : Nikkei down 0.24%, Shanghai Composite down 0.47%, Hang Seng up 0.69%, ASX up 0.00%
• Commodities : Gold at $1192.20 (+0.68%), Silver at $14.75 (+0.78%), Brent Oil at $71.59 (-0.33%), WTI Oil at $64.91 (-0.46%)
• Rates : US 10-year yield at 2.862, UK 10-year yield at 1.235, Germany 10-year yield at 0.312

News & Data:

• (USD) Prelim UoM Consumer Sentiment 95.3 vs 98.1 expected
• (CAD) Trimmed CPI y/y 2.10% vs 2.00% previous
• (CAD) Median CPI y/y 2.00% vs 2.00% previous
• (CAD) Foreign Securities Purchases 11.55B vs 4.91B expected
• (CAD) Common CPI y/y 1.90% vs 1.90% previous
• (CAD) CPI m/m 0.50% vs 0.10% expected
• (EUR) Final CPI y/y 2.10% vs 2.10% expected
• The People's Bank of China (PBOC) set the Yuan reference rate at 6.8718 vs. Friday's fix of 6.8894
• Did Erdogan Quietly Fold? Overnight Lending Rate Spikes 150bps Amid Silence From Central Bank

CFTC Positioning Data (Week Ending AUG 14th, 2018):

Markets Update:

Asian stock markets, with the exception of Japan, were in positive territory on Monday morning following the positive lead from Wall Street Friday on optimism that U.S.-China trade talks will resolve their escalating trade dispute. A nine-member delegation from Beijing will hold meetings with U.S. officials on this week, according to the Wall Street Journal. In addition, higher commodity prices boosted resources stocks.

Japan's Nikkei 225 fell 0.25 percent while the Topix was down 0.35 percent, with most of the country's major auto manufacturers trading in negative territory. Mitsubishi Motor was among the biggest losers at 1.25 percent lower. Hong Kong's Hang Seng index rose 0.7 percent in afternoon trade as all its major casino stocks went into positive territory. Of note was Wynn Macau, which jumped 8.11 percent higher.

Chinese mainland markets gave up initial gains to trade lower by 0.47%. The Australian market is flat following the positive lead from Wall Street Friday and on higher commodity prices. Nevertheless, gains are modest as investors digested mixed corporate earnings results.

Helping the general mood was a steadying in the Turkish lira, which was holding around 6.0000 per dollar on Monday. Qatar and Turkey’s central banks have signed a currency swap to provide liquidity and support for financial stability, Qatar’s central bank said on Sunday.

The dollar index was a fraction firmer at 96.201 on Monday, having fallen almost 0.6 percent at the end of last week. The upward trend in the U.S. dollar has also pressured oil, with U.S. crude down for a seventh consecutive week and global benchmark Brent off for a third week.

Upcoming Events:

Monday, August 20^th 2018  

• 02:15 PM GMT – (CAD) Gov Council Member Wilkins Speaks
• 04:00 PM GMT – (USD) FOMC Member Bostic Speaks
• 05:00 PM GMT – (EUR) German Buba President Weidmann Speaks
• 11:00 PM GMT – (AUD) RBA Gov Lowe Speaks

Tuesday, August 21^st 2018

• 02:30 AM GMT – (AUD) Monetary Policy Meeting Minutes
• 09:30 AM GMT – (GBP) Public Sector Net Borrowing
• Tentative – (NZD) GDT Price Index
• 11:45 PM GMT – (NZD) Retail Sales q/q
• 11:45 PM GMT – (NZD) Core Retail Sales q/q

Wednesday, August 22^nd 2018

• 02:30 AM GMT – (AUD) Construction Work Done q/q
• 04:10 AM GMT – (AUD) RBA Assist Gov Debelle Speaks
• 01:30 PM GMT – (CAD) Core Retail Sales m/m
• 01:30 PM GMT – (CAD) Retail Sales m/m
• 03:00 PM GMT – (USD) Existing Home Sales
• 03:30 PM GMT – (USD) Crude Oil Inventories
• 07:00 PM GMT – (USD) FOMC Meeting Minutes

Thursday, August 23^rd 2018

• 08:00 AM GMT – (EUR) French Flash Manufacturing PMI
• 08:00 AM GMT – (EUR) French Flash Services PMI
• 08:30 AM GMT – (EUR) German Buba President Weidmann Speaks
• 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
• 12:30 PM GMT – (EUR) ECB Monetary Policy Meeting Accounts
• Day 1 – (All) Jackson Hole Symposium
• 11:45 PM GMT – (NZD) Trade Balance

Friday, August 24^th 2018

• 01:30 PM GMT – (USD) Core Durable Goods Orders m/m
• 01:30 PM GMT – (USD) Durable Goods Orders m/m
• 03:00 PM GMT – (USD) Fed Chair Powell Speaks
• Day 2 – (All) Jackson Hole Symposium