Global Markets:
- Asian stock markets: Nikkei up 1.17%, Shanghai Composite down 1.55%, Hang Seng up 0.63%, ASX up 0.24%
- Commodities: Gold at $1313.30 (-0.10%), Silver at $16.255 (+0.10%), WTI Oil at $61.64 (-0.24%), Brent Oil at $65.45 (-0.09%)
- Rates: US 10-year yield at 2.837, UK 10-year yield at 1.549, German 10-year yield at 0.745
News & Data:
- (CNY) Trade Balance 136B vs 328B expected
- (AUD) NAB Quarterly Business Confidence 6 vs 8 previous
- (NZD) Official Cash Rate 1.75% vs 1.75% expected
- (GBP) Halifax HPI m/m -0.60% vs 0.20% expected
- (CAD) Building Permits m/m 4.80% vs 2.10% expected
- (USD) Crude Oil Inventories 1.9M vs 3.2M expected
- Senate leaders strike 2 year budget deal ahead of government shutdown deadline
- Trump calls Wall Street slide a 'big mistake' given overall economic growth
Markets Update:
Asian markets have been recovering from the savage earlier this week, and traded higher today. Chinese economic data out late morning showed the country's trade surplus narrowed sharply in January as imports surged leading to a mixed reaction in Chinese equities.
The weaker yen, and buying on the dips are helping accelerate Nikkei’s recovery. Australian materials traded lower, however, banks helped hold the ASX steady.
Dollar slightly strengthened against major currencies, including a weaker yen. Yuan moved by as much as 1%, as trade data came in. While the Australian dollar was mixed, Kiwi dollar took a hit after the central bank’s dovish policy statement.
From the US Fed’s side, Williams said gradual tightening to continue and will not overreact to good news
Oil has been lower, as was yesterday, with US crude output at a high. While the safe yellow metal was expected to gain from the equity rout, response has been muted.
Meanwhile, the yield on 10-year Treasury fell to 2.81% from 2.84% after congressional leaders said they had reached an agreement on a two-year budget deal.
Upcoming Events:
- 08:45 AM GMT – (EUR) German Buba President Weidmann Speaks
- 09:00 AM GMT – (AUD) RBA Gov Lowe Speaks
- 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) BOE Inflation Letter
- 12:00 PM GMT – (GBP) MPC Asset Purchase Facility Votes
- 01:30 PM GMT – (CAD) NHPI m/m
- 01:30 PM GMT – (USD) Unemployment Claims
- 05:45 PM GMT – (CAD) Gov Council Member Wilkins Speaks
- Tentative – (USD) Mortgage Delinquencies
