Global Markets:
- Asian stock markets: Nikkei down 2.10 %, Shanghai Composite fell 2.15 %, Hang Seng declined 1.90 %, ASX 200 closed for public holiday
- Commodities: Gold at $1112.70 (+0.70 %), Silver at $14.29 (+0.25 %), WTI Oil at $29.60 (-2.50 %), Brent Oil at $30.70 (-0.80 %)
- Rates: US 10 year yield at 2.01, UK 10 year yield at 1.70, German 10 year yield at 0.47
News & Data:
- New Zealand PSI (Dec): 58.9 (prev 59.8)
- South Korea GDP SA (QoQ) Q4, P: 0.6% (exp 0.6% prev 1.3%)
- South Korea GDP (YoY) Q4, P: 3.0% (exp 3.0% prev 2.7%)
- Japan Services PPI (YoY) Dec: 0.4% (exp 0.2% prev 0.2%)
- PBoC Fixes Yuan Reference Rate At 6.5548 (prev 6.5557)
- Ecuador Oil Minister Pareja: Some OPEC members are seeking an emergency meeting in March – BBG
- Japanese Econ Minister Amari: Don’t Think BoJ Will Take Bold Steps Like ECB — RTRS
- Amari: Kuroda Takes Appropriate Steps When Needed
- Japanese PM Adviser Hamada: BoJ Easing Still Needed — Toyo Keizai
- Asian shares, oil skid as global growth concerns dominate – RTRS
- Dollar inches lower in cautious trade as Fed looms – RTRS
Markets Update:
It was a risk-off session in Asia as oil retraced its earlier gains and fell back below $30 per barrel. US stock markets finished the day 1 % lower and Asian markets followed them lower, with most of the major indices down more than 2 % on the day.
USD/JPY came under pressure ahead of the Tokyo open and declined to 118.00. Should it break below the aforementioned level, next support lies at 117.45. EUR/USD was quiet overnight and consolidated in a 1.0842-60 range. GBP/USD fell in the early Asian session, from 1.4250 to a low of 1.4206. It recovered from there however, and rose back to 1.4240 later in the session.
The Canadian Dollar weakened along with oil, which led to a rally back to 1.43 in USD/CAD. The Australian and New Zealand Dollar also retraced earlier gains; AUD/USD fell to 0.6933, while NZD/USD tumbled to 0.6425.
Upcoming Events:
- 10:45 GMT – Bank of England Governor Carney speaks
- 14:00 GMT – US House Price Index
- 14:45 GMT – US Services PMI
- 15:00 GMT – US CB Consumer Confidence
- 15:00 GMT – US Richmond Manufacturing Index
