Global Markets:
- Asian Stock Markets : Nikkei down 0.76%, Shanghai Composite down 0.40%, Hang Seng down 0.82%, ASX down 0.43%
- Commodities : Gold at $1220.20 (-0.23%), Silver at $15.45 (-0.28%), Brent Oil at $74.83 (+0.09%), WTI Oil at $68.94 (+0.36%)
- Rates : US 10-year yield at 2.962, UK 10-year yield at 1.281, Germany 10-year yield at 0.409
News & Data:
- (USD) Revised UoM Consumer Sentiment 97.9 vs 97.1 expected
- (USD) Advance GDP Price Index q/q 3.00% vs 2.30% expected
- (USD) Advance GDP q/q 4.10% vs 4.20% expected
- Italy Backs Brexit: Salvini Accuses EU of "Swindling" the UK
- Yuan slides as the Australian dollar lurches sideways
- Japan retail sales pick up in positive sign on spending
CFTC Positioning Data (Week Ending July 24th, 2018):
- EUR long 29K vs 21K long last week. Longs increased by 8K.
- GBP short 47K vs 38K short last week. Shorts increased by 9 K
- JPY short 74K vs 59K short last week. Shorts increased by 15K.
- CHF short 46K vs 42K short last week. Shorts increased by 4K
- CAD short 44K vs 47K short last week. Shorts trimmed by 3K.
- AUD short 45k vs 41K short last week. Shorts increased by 4K
- NZD short 24K vs 25K short last week. Shorts trimmed by 1K.
Markets Update:
Asian stock markets are mostly lower on Monday, tracking the negative cues from Wall Street amid weak corporate earnings results and as investors shifted focus to key central bank meetings this week. The Bank of Japan will announce its monetary policy decision on Tuesday, while the U.S. Federal Reserve's monetary policy announcement is due on Wednesday.
The Japanese market is losing on caution ahead of the Bank of Japan's monetary policy decision due on Tuesday. Meanwhile, in Hong Kong, the Hang Seng Index came under pressure, giving up more than 0.7 percent as most sectors recorded declines in afternoon trade.
Chinese stocks traded also traded lower, with the Shanghai Composite reversing moderate gains seen in the morning to slip into negative territory and shedding 0.3 percent. The Australian market is declining following the negative cues from Wall Street. In addition, lower commodity prices are weighing on resources stocks. Losses were led by the drop in the health care and information technology subindexes, while heavily weighted "Big Four" banks all traded lower.
Against a basket of currencies the dollar was hovering at 94.733, having repeatedly failed to clear resistance around 95.652 this month. The euro has had problems of its own as the European Central Bank emphasised that rates would not be rising until the second half of next year.
In Asia, eyes were on China’s yuan after it suffered the longest weekly losing streak since November 2015. It duly weakened further, slipping past 6.8400 per dollar for the first time since June last year. In commodity markets, oil prices were mixed with U.S. crude supported by recent upbeat news on the U.S. economy.
Upcoming Events:
Monday, July 30th 2018
- All Day GMT – (EUR) German Prelim CPI m/m
- 08:00 AM GMT – (CHF) KOF Economic Barometer
- 08:00 AM GMT – (EUR) Spanish Flash CPI y/y
- 09:30 AM GMT – (GBP) Net Lending to Individuals m/m
Tuesday, July 31st 2018
- 02:00 AM GMT – (CNY) Manufacturing PMI
- 02:00 AM GMT – (CNY) Non-Manufacturing PMI
- 02:00 AM GMT – (NZD) ANZ Business Confidence
- 02:30 AM GMT – (AUD) Building Approvals m/m
- Tentative – (JPY) BOJ Outlook Report
- Tentative – (JPY) BOJ Policy Rate
- Tentative – (JPY) Monetary Policy Statement
- 07:00 AM GMT – (EUR) German Retail Sales m/m
- Tentative – (JPY) BOJ Press Conference
- 08:00 AM GMT – (EUR) Spanish Flash GDP q/q
- 10:00 AM GMT – (EUR) CPI Flash Estimate y/y
- 10:00 AM GMT – (EUR) Core CPI Flash Estimate y/y
- 10:00 AM GMT – (EUR) Prelim Flash GDP q/q
- 01:30 PM GMT – (CAD) GDP m/m
- 01:30 PM GMT – (CAD) RMPI m/m
- 01:30 PM GMT – (USD) Core PCE Price Index m/m
- 01:30 PM GMT – (USD) Employment Cost Index q/q
- 01:30 PM GMT – (USD) Personal Spending m/m
- 02:45 PM GMT – (USD) Chicago PMI
- 03:00 PM GMT – (USD) CB Consumer Confidence
- 11:45 PM GMT – (NZD) Employment Change q/q
- 11:45 PM GMT – (NZD) Unemployment Rate
Wednesday, August 1st 2018
- 09:30 AM GMT – (GBP) Manufacturing PMI
- 01:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 03:00 PM GMT – (USD) ISM Manufacturing PMI
- 03:30 PM GMT – (USD) Crude Oil Inventories
- 07:00 PM GMT – (USD) FOMC Statement
- 07:00 PM GMT – (USD) Federal Funds Rate
Thursday, August 2nd 2018
- 02:30 AM GMT – (AUD) Trade Balance
- 09:30 AM GMT – (GBP) Construction PMI
- 12:00 PM GMT – (GBP) BOE Inflation Report
- 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
- 12:00 PM GMT – (GBP) Asset Purchase Facility
- 12:00 PM GMT – (GBP) MPC Asset Purchase Facility Votes
- 12:30 PM GMT – (GBP) BOE Gov Carney Speaks
- 01:30 PM GMT – (USD) Unemployment Claims
Friday, August 3rd 2018
- 02:30 AM GMT – (AUD) Retail Sales m/m
- 09:30 AM GMT – (GBP) Services PMI
- 01:30 PM GMT – (CAD) Trade Balance
- 01:30 PM GMT – (USD) Average Hourly Earnings m/m
- 01:30 PM GMT – (USD) Non-Farm Employment Change
- 01:30 PM GMT – (USD) Unemployment Rate
- 03:00 PM GMT – (USD) ISM Non-Manufacturing PMI
