Global Markets:
- Asian Stock Markets : Nikkei up 0.25%, Shanghai Composite up 0.73%, Hang Seng up 0.62%, ASX up 0.70%
- Commodities: Gold at $1420.85 (-0.06%), Silver at $16.50 (+0.13%), Brent Oil at $64.07 (+0.38%), WTI Oil at $57.04 (+0.48%)
- Rates : US 10-year yield at 2.074, UK 10-year yield at 0.684, Germany 10-year yield at -0.349
News & Data:
- (JPY) Flash Manufacturing PMI 49.6 vs 49.7 expected
- (AUD) Flash Services PMI 51.9 vs 52.6 previous
- (AUD) Flash Manufacturing PMI 51.4 vs 52 previous
- (NZD) Trade Balance 365M vs 100M expected
- (AUD) CB Leading Index m/m -0.10% vs 0.20% previous
- (USD) Existing Home Sales 5.27M vs 5.35M expected
- (USD) Richmond Manufacturing Index -12 vs 5 expected
- (EUR) Consumer Confidence -7 vs -7 expected
- (USD) HPI m/m 0.10% vs 0.30% expected
- (GBP) CBI Industrial Order Expectations -34 vs -15 expected
- (GBP) 10-y Bond Auction 0.79|2.2 vs 0.89|2.1 previous
- (JPY) BOJ Core CPI y/y 0.60% vs 0.60% expected
- RBA to cut cash rate to 0.75% in October & to 0.50% in February
Markets Update:
Asian markets were mostly higher in early trading Wednesday, after reports that the U.S. and China will soon resume trade negotiations. A delegation led by U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will fly to Shanghai for high-level talks next week, the Wall Street Journal reported Tuesday.
Markets have welcomed any sign of possible progress on trade despite warnings the U.S.-Chinese truce is fragile because the two sides still are separated by the same disputes that caused talks to founder in May. Those include U.S. restrictions on technology sales to Chinese tech giant Huawei. Stocks are just a whisker away from all-time highs buoyed by expectations of a wave of policy stimulus by global central banks and a resulting sharp decline in bond yields. The ECB is thought likely to at least offer a nod to easier policy at its meeting on Thursday.
Asian stocks are just a whisker away from all-time highs buoyed by expectations of a wave of policy stimulus by global central banks and a resulting sharp decline in bond yields. Stocks in Hong Kong, mainland China advance strongly by 0.62% and 0.73% respectively. Japan’s Nikkei added 0.25%, while Australian stocks rose 0.8% to all-time highs. The ASX 200 index has followed the lead of U.S. markets and pushed higher again on Wednesday.
Oil prices edged higher on Wednesday, extending gains as rising tensions with Iran fuelled concerns about supply disruptions and as U.S. inventory data showed a much bigger than expected drop in crude stockpiles.
Brent crude used to price international oils, advanced 31 cents to $64.07 in London. It gained 57 cents in the previous session to $63.83. The dollar declined to 108.14 Japanese yen from Tuesday’s 108.23 yen. Gold steadied at $1,420.856 per ounce, though it was still short of last week’s peak at $1,452.60. U.S. government debt yields ticked higher on Tuesday as traders awaited key monetary policy decisions from the European Central Bank.
Upcoming Events:
- 8:30 am GMT – (GBP) High Street Lending
- 1:00 pm GMT – (CNY) CB Leading Index m/m
- 1:00 pm GMT – (EUR) Belgian NBB Business Climate
- 1:45 pm GMT – (USD) Flash Manufacturing PMI
- 1:45 pm GMT – (USD) Flash Services PMI
- 2:00 pm GMT – (USD) New Home Sales
- 2:30 pm GMT – (USD) Crude Oil Inventories
- 11:50 pm GMT – (JPY) SPPI y/y
- &more…
