Global Markets:
- Asian stock markets: Nikkei down 0.21%, Shanghai Composite up 0.16 %, Hang Seng gained 0.16 %, ASX down 0.23%
- Commodities: Gold at $1330.90 (-0.17%), Silver at $17.00 (-0.21%), WTI Oil at $63.41 (+0.16 %), Brent Oil at $68.78 (+0.25 %)
- Rates: US 10-year yield at 2.650, UK 10-year yield at 1.342, German 10-year yield at 0.576
News & Data:
- (JPY) All Industries Activity m/m 1% vs 0.9% expected
- (JPY) BOJ Policy Rate -0.1% vs -0.1% expected
- (CAD) Wholesale Sales m/m 0.7% vs 1% expected
- Trump Slaps Tariffs On Imported Solar Panels And Washing Machines
- South Korea to ban cryptocurrency traders from using anonymous bank accounts
Markets Update:
With the Congress approving a short-term funding measure to end the shutdown, the markets traded on a positive sentiment today. Asian markets are trading in the green.
While the White House imposed import tariffs on solar panels and washers, the positive moves on Chinese and Korean markets imply that the markets have discounted the move. The upside on ASX has been driven by gains in the banking sector, and a set of broker upgrades.
On the macro front, BoJ left its policy untouched, in a statement virtually similar to one from the last time – leading to slight gains in the Yen. The BoJ kept its deposit rate at negative 0.1% and maintained its yield target on the 10-year JGB at around 0%.Trade headlines continue to be hawkish.
The Dollar Index is at support levels of 90.3-90.4, while the Euro continues to consolidate near 1.225. The USD remained on defensive footing, with Treasury Yields consolidating. The weak dollar helped industrial metals, and oil price stabilized on the output cuts.
Upcoming Events:
- 06:30 AM GMT – (JPY) BOJ Press Conference
- 09:30 AM GMT – (GBP) Public Sector Net Borrowing
- 10:00 AM GMT – (EUR) German ZEW Economic Sentiment
- 10:00 AM GMT – (EUR) ZEW Economic Sentiment
- 11:00 AM GMT – (GBP) CBI Industrial Order Expectations
- 03:00 PM GMT – (EUR) Consumer Confidence
- 03:00 PM GMT – (USD) Richmond Manufacturing Index
- 11:30 PM GMT – (AUD) MI Leading Index m/m
- 11:50 PM GMT – (JPY) Trade Balance
- All Day – (All) WEF Annual Meetings
- All Day – (EUR) ECOFIN Meetings
- &more…
