Global Markets:
- Asian Stock Markets : Nikkei down 0.59%, Shanghai Composite down 0.80%, Hang Seng down 1.03%, ASX down 0.10%
- Commodities : Gold at $1206.30 (-0.03%), Silver at $14.53 (-0.22%), Brent Oil at $77.42 (-0.28%), WTI Oil at $69.59 (-0.30%)
- Rates : US 10-year yield at 2.860, UK 10-year yield at 1.431, Germany 10-year yield at 0.340
News & Data:
- (AUD) Company Operating Profits q/q 2.00% vs 1.40% expected
- (AUD) Retail Sales m/m 0.00% vs 0.30% expected
- (USD) Chicago PMI 63.6 vs 63 expected
- (CAD) RMPI m/m 0.70% vs 0.00% expected
- (EUR) Core CPI Flash Estimate y/y 1.00% vs 1.10% expected
- (EUR) CPI Flash Estimate y/y 2.00% vs 2.10% expected
- (EUR) German Retail Sales m/m -0.40% vs -0.10% expected
- Japan capital spending rises at fastest pace in decade in April-June
- As Emerging Market Currencies Collapse, Gold is being Mobilized
CFTC Positioning Data (Week Ending AUG 28th, 2018):
- EUR short 7K vs 5K short last week.
- GBP short 77K vs 72K short last week.
- JPY short 46K vs 47K short last week.
- CHF short 45K vs 47K short last week.
- CAD short 25K vs 27K short last week.
- AUD short 45k vs 50k short last week.
- NZD short 24K vs 25K short last week.
Markets Update:
Asia markets were largely negative in midday trade on Monday, with Canada and the U.S. failing to come to a trade agreement on Friday, and worries on further escalation in the U.S.-China trade war. Meanwhile, a private survey showed China's factory activity growth slowed to a 14-month low in August.
Japan’s Nikkei 225 slipped 0.6%, with most sectors falling, as data revealed that the Markit/Nikkei Japan Manufacturing Purchasing Managers' Index (PMI) rose to a seasonally adjusted 52.5 in August from a final 52.3 in July. South Korea's Kospi also traded lower by 0.72 percent. The Greater China markets were down during midday trade as Hong Kong's Hang Seng index fell more than 1 percent.
On the mainland, the Shanghai composite was lower by 0.80 percent and the Shenzhen composite tumbled by 1.15 percent. Some investors, however, say the slide in Chinese stocks is potentially unjustified. In Australia, the ASX 200 pared some of its earlier gains to trade largely flat.
Trade war worries have lifted the safe-haven Swiss franc, which hit a four-month high of 0.9654 franc to the dollar and one-year high of 1.1240 per euro on Friday. In contrast, the Australian dollar, sometimes used as a proxy for bets on China, hit a 20-month low of $0.71655. Among the G3 currencies, the euro, which is generally positively correlated to risk sentiment, tends to ease on trade worries while the yen tends to gain but the two currencies’ reactions have been more qualified. Gold declined as the dollar firmed up on safe-haven demand amid the impasse in U.S.-Canada talks.
Upcoming Events:
Monday, September 3 2018
- 09:30 AM GMT – (GBP) Manufacturing PMI
- 06:15 PM GMT – (EUR) German Buba President Weidmann Speaks
Tuesday, September 4 2018
- 02:30 AM GMT – (AUD) Current Account
- 05:30 AM GMT – (AUD) Cash Rate
- 05:30 AM GMT – (AUD) RBA Rate Statement
- 09:30 AM GMT – (GBP) Construction PMI
- 10:30 AM GMT – (AUD) RBA Gov Lowe Speaks
- 01:15 PM GMT – (GBP) Inflation Report Hearings
- 03:00 PM GMT – (USD) ISM Manufacturing PMI
- Tentative – (NZD) GDT Price Index
Wednesday, September 5 2018
- 02:30 AM GMT – (AUD) GDP q/q
- 09:30 AM GMT – (GBP) Services PMI
- 01:30 PM GMT – (CAD) Trade Balance
- 01:30 PM GMT – (CAD) Labor Productivity q/q
- 03:00 PM GMT – (CAD) BOC Rate Statement
- 03:00 PM GMT – (CAD) Overnight Rate
Thursday, Spetemeber 6, 2018
- 02:30 AM GMT – (AUD) Trade Balance
- 01:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 03:00 PM GMT – (USD) ISM Non-Manufacturing PMI
- 03:00 PM GMT – (USD) FOMC Member Williams Speaks
- 04:00 PM GMT – (USD) Crude Oil Inventories
- 05:30 PM GMT – (CHF) Gov Board Member Zurbrugg Speaks
- 07:30 PM GMT – (CAD) Gov Council Member Wilkins Speaks
Friday, September 7 2018
- 01:00 AM GMT – (JPY) Average Cash Earnings y/y
- Tentative – (CNY) Trade Balance
- 01:30 PM GMT – (CAD) Employment Change
- 01:30 PM GMT – (CAD) Unemployment Rate
- 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 – (CAD) Ivey PMI
