Global Markets:
- Asian Stock Markets : Nikkei up 0.10%, Shanghai Composite up 0.31%, Hang Seng down 0.57%, ASX up 0.10%
- Commodities : Gold at $1338.30 (+0.07%), Silver at $16.40 (+0.05%), WTI Oil at $67.88 (-0.35%), Brent Oil at $63.30 (-0.33%)
- Rates : US 10-year yield at 2.781, UK 10-year yield at 1.363, Germany 10-year yield at 0.505
News & Data:
- (CNY) Caixin Services PMI 52.3 vs 54.5 expected
- (AUD) Building Approvals m/m -6.20% vs -5.10% expected
- (AUD) Retail Sales m/m 0.60% vs 0.30% expected
- (NZD) GDT Price Index -0.60% vs -1.20% previous
- (GBP) Manufacturing PMI 55.1 vs 54.8 expected
- (EUR) German Retail Sales m/m -0.70% vs 0.70% expected
- (AUD) Cash Rate 1.50% vs 1.50% expected
- China Commerce Ministry: Will adjust anti-dumping tariffs
- Market volatility a sign that investors are looking for excuses to sell off
Markets Update:
Asian equities are in a choppy trade today, after Wall Street’s rebound yesterday. While the tech rebound has helped shore up the markets, the extensive trade list published by Washington today aggravated trade war fears.
The Trump administration announced 25 percent tariffs on $50 billion of annual imports from China, covering around 1,300 industrial technology, transport and medical products. US trade groups reacted negatively to this announcement, citing concerns both about rising input costs and retaliatory tariffs.
That said, Chinese equities have made gains today, backed by local tech giants. Japan has been oscillating, with razor thin gains at the moment.
While the Wall Street rebound caused a selling pressure in yen and gold yesterday, the safe haven currency has made slight gains today. Yesterday’s swing in risk sentiment also took a few bps off the bond yields, with 10 year treasury now at 2.78 percent.
The Canadian dollar held firm after hitting a nearly five-week high as investors grew more optimistic about the prospect of a NAFTA trade deal. Australian retail sales numbers were positive, thereby boosting the AUD, however, building approvals failed to impress. Gold was largely flat in early trade today, while crude edged lower.
Upcoming Events:
- 08:30 AM GMT – (GBP) Construction PMI
- 09:00 AM GMT – (EUR) CPI Flash Estimate y/y
- 09:00 AM GMT – (EUR) Core CPI Flash Estimate y/y
- 12:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 02:00 PM GMT – (USD) ISM Non-Manufacturing PMI
- 02:30 PM GMT – (USD) Crude Oil Inventories
- 03:00 PM GMT – (USD) FOMC Member Mester Speaks
