Global Markets:
- Asian Stock Markets : Nikkei up 1.34%, Shanghai Composite up 0.46%, Hang Seng up 1.19%, ASX up 0.09%
- Commodities : Gold at $1992.80 (-0.37%), Silver at $24.36 (-0.53%), Brent Oil at $84.22 (-0.23%), WTI Oil at $80.48 (-0.15%)
- Rates : US 10-year yield at 4.002, UK 10-year yield at 4.389, Germany 10-year yield at 2.489
News & Data:
- (USD) Core PCE Price Index m/m 0.2% vs 0.2% expected
- (USD) Employment Cost Index q/q 1.0% vs 1.1% expected
- (CAD) GDP m/m 0.3% vs 0.3% expected
Markets Update:
Asia-Pacific markets rose on Monday despite China’s factory activity remaining in contraction territory for the fourth consecutive month. The official manufacturing Purchasing Managers’ Index (PMI) for July was reported at 49.3, slightly higher than June’s figure of 49.0, according to the national bureau of statistics. However, the PMI for non-manufacturing activity showed a slower rate of expansion, coming in at 51.5 compared to 53.2 in June.
Meanwhile, in the Japanese market, the Nikkei 225 recorded a gain of 1.34%, closing at 33,172, and the broader Topix index saw a more substantial rise of 1.39%, reaching a new 33-year record at 2,322.56. However, the country’s industrial output for June fell short of expectations, growing by 2% month on month, below the economists’ projected 2.4% growth.
Hong Kong’s Hang Seng index rose 1.19%, and the Hang Seng Tech index saw a more significant increase of 2.77%, approaching the 20,000 mark for the first time in over a month. Mainland Chinese markets also showed gains, with the Shanghai Composite rising by 0.39% and the Shenzhen Component increasing by 0.63%, though they pared earlier gains.
In South Korea, the Kospi advanced 0.93%, ending at 2,632.58, and extended its third consecutive day of gains. Additionally, the Kosdaq climbed 2.25%, closing near its 16-month high at 935.97.
Australia’s S&P/ASX 200 experienced a marginal climb, closing at 7,410.4, as investors prepared for the Reserve Bank of Australia’s rate decision. Economists polled by Reuters were expecting a 25 basis points hike in its benchmark policy rate to 4.35%.
Meanwhile, in the United States on Friday, all three major indexes posted gains as the June data for the personal consumption expenditures price index showed easing inflation. Core PCE increased by 0.2% month-over-month, and core PCE rose 4.1% from the year-ago period, slightly lower than the anticipated 4.2%. The Dow rose 0.5%, the S&P 500 added to its value, and the Nasdaq Composite advanced by 1.90%.
Upcoming Events:
- 9:00 AM GMT – EUR CPI Flash Estimate y/y
- 9:00 AM GMT – EUR Core CPI Flash Estimate y/y
- 9:00 AM GMT – EUR Italian Prelim CPI m/m
- 9:00 AM GMT – EUR Prelim Flash GDP q/q
- 1:45 PM GMT – USD Chicago PMI
