Global Markets:
- Asian Stock Markets : Nikkei down 2.46%, Shanghai Composite up 0.02%, Hang Seng down 1.48% ASX up 0.74%
- Commodities : Gold at $2413.5 (0.47%), Silver at $31.02 (0.34%), Brent Oil at $85.03 (0.07%), WTI Oil at $81.01 (0.07%)
- Rates : US 10-year yield at 4.234, UK 10-year yield at 4.156, Germany 10-year yield at 2.488
News & Data:
- (USD) Core PPI m/m 0.4% vs 0.2% expected
- (USD) PPI m/m 0.2% vs 0.1% expected
- (CAD) Building Permits m/m -12.2% vs -5.0% expected
Markets Update:
Asia-Pacific markets mostly declined on Monday as China’s GDP data fell short of expectations, while investors evaluated the impact of an assassination attempt on former U.S. President Donald Trump during a weekend rally. David Roche, president of Quantum Strategy, stated in a Sunday note that Trump is likely to win the presidency, with an increased chance of a Republican sweep in both the House of Representatives and the Senate.
China’s statistics bureau reported a 4.7% growth in its economy for the second quarter, missing the 5.1% expansion forecast by a Reuters poll and falling short of the 5.3% growth seen in the first quarter. Retail sales for June also disappointed, increasing by 2% year on year compared to the 3.3% growth expected by economists polled by Reuters. Sales had risen by 3.7% in May. Hong Kong’s Hang Seng index dropped 1.42%, led by declines in consumer non-cyclical and real estate stocks, while mainland China’s CSI 300 slipped by 0.09% following the disappointing economic data.
Separately, China’s top leaders are set to meet this week for the highly anticipated Third Plenum. Analysts expect the gathering to focus on issues such as high local government debt levels and a push for advanced manufacturing, rather than the country’s real estate sector. Japan’s markets are closed for a public holiday, and South Korea’s Kospi and the small-cap Kosdaq were nearly flat.
Australia’s S&P/ASX 200 extended its gains for the third consecutive day, rising by 0.74% and approaching a new closing high, making it the only major Asian benchmark to finish in positive territory. U.S. market futures showed marginal gains late Sunday night, with Dow Jones Industrial Average futures up by 0.11%, and S&P 500 and Nasdaq futures each increasing by about 0.1%.
Upcoming Events:
- 12:30 PM GMT – CAD Manufacturing Sales m/m
- 12:30 PM GMT – CAD Wholesale Sales m/m
- 12:30 PM GMT – USD Empire State Manufacturing Index
- 4:00 PM GMT – USD Fed Chair Powell Speaks
