Global Markets:
- Asian Stock Markets : Shanghai Composite down 3.38%, Hang Seng down 0.92%, ASX down 1.38%
- Commodities : Gold at $1199.90 (-0.47%), Silver at $14.50 (-1.05%), Brent Oil at $83.47 (-0.82%), WTI Oil at $73.84 (-0.67%)
- Rates : US 10-year yield at 3.233, UK 10-year yield at 1.731, Germany 10-year yield at 0.568
News & Data:
- (USD) Unemployment Rate 3.70% vs 3.80% expected
- (USD) Non-Farm Employment Change 134K vs 185K expected
- (USD) Average Hourly Earnings m/m 0.30% vs 0.30% expected
- (CAD) Trade Balance 0.5B vs -0.5B expected
- (CAD) Unemployment Rate 5.90% vs 5.90% expected
- (CAD) Employment Change 63.3K vs 25.0K expected
- China to adopt more proactive fiscal policy: finance minister
- AUDUSD Ticks Up As China’s Service Sector Beats Forecasts In Sep
- China's Investment In Australia Slumps 40% Amid Diplomatic Spat
CFTC Positioning Data (Week Ending OCT 2nd, 2018):
- EUR short -7K vs 4K long last week. Position shifts to short from long. Change of 11K
- GBP short 59K vs 67K short last week. Shorts trimmed by 8K
- JPY short -114K vs 85K short last week. Shorts increased 29K
- CHF short 13K vs 16K short last week. Shorts trimmed 3K
- CAD short 19k vs 20k short last week. Shorts trimmed by 1K
- AUD short 72k vs 72k short last week. Unchanged
- NZD short 31K vs 32K short last week. Shorts trimmed by 1K
Markets Update:
Asian stock markets are mostly lower on Monday following the weak cues from Wall Street Friday after strong U.S. jobs data for September added to worries about rising interest rates. Japan’s Nikkei 225 is closed for a holiday. The Chinese market, which reopened after a week-long holiday, fell more than 3 percent after the country's central bank cut the reserve requirements for banks in order to lower financing costs and spur growth amid a trade war with the U.S.
While the U.S. Labor Department report showed weaker than expected job growth in September, the jump in employment in August was upwardly revised and the unemployment rate fell to its lowest level since 1969. The strong report keeps the Federal Reserve firmly on track to continue raising rates once a quarter, with the next hike likely to come in December.
China markets fell on Monday after the central bank cut the reserve requirement for banks over the weekend. The People’s Bank of China announced on Sunday that it lowered the required reserve ratio (RRR) for some lenders by 1%, although its impact on local equities seemed to be limited. The Shanghai composite fell 3.4 percent while the Shenzhen composite declined by around 3.2 percent on the first trading day since the Golden Week holidays ended. Hong Kong's Hang Seng index slipped by 0.9 percent in the afternoon.
Meanwhile, South Korea’s KOSPI slipped 0.2% as U.S. President said he hopes to see his North Korean counterpart Kim Jong Un “in the near future”. His comments came U.S. Secretary of State Michael Pompeo’s meeting with North Korean leader Kim Jong Un in Pyongyang over the weekend. Pompeo told South Korean President Moon Jae-in upon his arrival in Seoul that Kim had agreed to meet with Trump “as soon as possible,” according to a statement from Moon’s office.
In currency markets, the dollar was 0.1 percent stronger against the yen at 113.83, while the euro was 0.1 percent weaker against the dollar at $1.1512. The dollar index, which tracks the greenback against a basket of six major rivals, was up 0.09 percent at 95.707. Oil prices fell more than 1 percent after the U.S. said it may grant waivers to sanctions against Iran's oil exports next month, and as Saudi Arabia was said to be replacing any potential shortfall from Iran.
Upcoming Events:
Tuesday, October 9, 2018
- 01:30 AM GMT – (AUD) NAB Business Confidence
- 03:35 PM GMT – (GBP) MPC Member Broadbent Speaks
- 07:00 PM GMT – (CAD) Gov Council Member Wilkins Speaks
Wednesday, October 10, 2018
- 02:10 AM GMT – (USD) FOMC Member Williams Speaks
- 09:30 AM GMT – (GBP) GDP m/m
- 09:30 AM GMT – (GBP) Manufacturing Production m/m
- 10:00 AM GMT – (GBP) MPC Member Haldane Speaks
- 01:30 PM GMT – (USD) PPI m/m
- 01:30 PM GMT – (USD) Core PPI m/m
- Tentative – (USD) Treasury Currency Report
- 11:00 PM GMT – (USD) FOMC Member Bostic Speaks
- 11:30 PM GMT – (AUD) RBA Assist Gov Ellis Speaks
Thursday, October 11, 2018
- 09:30 AM GMT – (GBP) BOE Credit Conditions Survey
- 11:45 AM GMT – (GBP) MPC Member Vlieghe Speaks
- 12:30 PM GMT – (EUR) ECB Monetary Policy Meeting Accounts
- 01:30 PM GMT – (USD) CPI m/m
- 01:30 PM GMT – (USD) Core CPI m/m
- 04:00 PM GMT – (USD) Crude Oil Inventories
- 10:30 PM GMT – (NZD) Business NZ Manufacturing Index\
Friday, October 12, 2018
- 01:30 AM GMT – (AUD) RBA Financial Stability Review
- Tentative – (CNY) Trade Balance
- 03:00 PM GMT – (USD) Prelim UoM Consumer Sentiment
- 05:30 PM GMT – (USD) FOMC Member Bostic Speaks
